How Come Most Landlords Have Flood Insurance

A destroyed roof

There are many locations throughout the United States that experience adverse weather quite often. The eastern seaboard, for example, experiences hurricane season every fall, and some years are worse than others in terms of storm severity. Many property owners in the United States, especially those with investments along the coasts, purchase numerous insurance policies to protect themselves from disaster. Take a private flood insurance policy, for example; these offer great protection should a flash flood, hurricane, or rapid snowmelt devastate your property.

If you want to know more about flood insurance and other types of insurance landlords and property managers should purchase, read on!

Private Flood Insurance: The Essentials

lighting striking

Earlier this year, the Trump Administration announced they want to overhaul government-subsidized flood insurance, and this overall could significantly affect properties of high value that are located in flood-prone areas. At present, many homeowners are required to purchase government-backed flood insurance, but less than five percent of policies have no federal backing. The Federal Emergency Management Agency (FEMA) plans to implement the changes in April of 2020, and they could affect 3.5 million single-family policyholders.

There are many adverse natural events that could put a home at flood risk, some of which being torrential rain, coastal surges, flash floods, and rapid snowmelt. Landlords and real estate investors who own rental properties in Florida, Louisiana, and Texas often purchase flood insurance, and such is largely why most policies are held in these states. It’s not wise to wait until something goes wrong to purchase insurance, for it only takes one significant destructive event to destroy an entire property. Also, floods and other water-related natural disasters are typically difficult to fully protect against.

Real Estate Insurance Should Be Purchased Also

Most landlords and property managers invest in real estate insurance before flood insurance, but the important thing is to possess both. It’s hard to find  a good real estate policy; that’s the unfortunate truth of the modern market. And if you own several properties, all of which being located in different places throughout the country, finding an all-inclusive policy is even more difficult. Fortunately there are some agencies out there offering expansive coverage, and many of these agencies offer flood insurance for rental property as well.

When searching for an ideal policy, keep the following things in mind:

  • Does the broker offer coverage in multiple states?
  • Can the policy be customized?
  • Can you add or remove properties without difficulty?

Where to Go for Comprehensive Coverage

If you’re currently renting out property that’s located in a high-risk flood zone and you’re looking to switch to private insurance, we here at Cobalt and Steele would like to help you. We have been offering expansive coverage in more than 30 states for years, and our policies are designed to offer maximum protection. Landlords, property owners, and real estate investors prefer our policies because we prioritize versatility, flexibility, and affordability. Get in touch with us today to learn more about private flood insurance.