While flood insurance is important for homeowners and businesses, there’s a segment of your community you may be missing. Standard renters insurance does not cover flood damages. Tenants are far less likely than a homeowner to have adequate coverage. As a result, those who rent houses or apartments in flood-prone areas are putting their safety, belongings and financial security at risk (without knowing it).

Here are several fast facts you can use to help educate renters about flood risk in their area and the policy options available to them.

1. When purchasing a home, interested buyers often receive information about flood risk. In high-risk flood-prone areas they are required to purchase flood insurance if they have a federally insured mortgage. But potential tenants are not usually given any information about flood dangers when they look at properties. 
2. A landlord’s flood insurance protects the building, but not personal belongings damaged from flooding. This can leave renters stuck with significant out-of-pocket expenses.
3. Low-cost renters insurance, also called contents coverage, can start at $100 a year and potentially protect renters from thousands of dollars in flood damages.
4. Renters in low-to-moderate risk areas may be eligible for a Preferred Risk Policy. These policy premiums are the lowest premiums available through NFIP. On average, about 40% of all NFIP claims come from outside high-risk flood areas.
5. For renters in towns, cities and suburbs with more development, more concrete and fewer places for water to go, a hard rain can become a flash flood in minutes. 

The bottom line
Utilize these talking points to help renters protect themselves from the costliest natural disaster in the United States. Renters may not know that flood insurance is separate from their renters insurance but you can help protect the life they’ve built with the right information. 

Follow the NFIP on LinkedIn for additional talking points and resources!