What Does Flood Insurance Cover (and Not Cover) for a Rental Property?
At Real Property Management Highland, we take pride in handling all your professional, trustworthy property management services; from tenant screening to leasing to maintenance to evictions, but when it comes to insurance, it’s important to consider what is covered and what is not. Typically, landlord insurance policies do not include flood insurance, so tenants need to purchase a separate policy through the National Flood Insurance Program (NFIP). Considering that you are renting in the Highland area with cities like Kingsland, it’s important to have that back up plan in these high-risk flooding areas.
So, what does flood insurance fully cover? Just as it says, flood insurance covers the actual cash value of the house including the plumbing, electrical, and heating systems, the cabinets, and garage, if included. You can also obtain extra coverage for personal property like furniture, but typically personal property in a rental property belongs to the resident.
While flood insurance is a good safety net to have, it’s also important to know what it doesn’t cover, also. In case of a flood, any damage done to decks, fences, landscaping, and pools will have to be repaired from out of pocket. It may not cover any mold damage, even if it was caused by a flood, which means you might be paying for that as well.
Lastly, another important thing to look into when buying flood insurance is your coverage amounts and what it fully entails. “Full replacement” insurance makes you think you are actually getting a full replacement when you technically might not be.
Making the right decisions when it comes to flood insurance can be difficult, but Earl and Rhonda Bishop from Real Property Management Highland can be a great asset to your team. We know to always expect the unexpected, so helping property owners to get the right amount of coverage for their investment portfolio is very important.
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