Key Insurance Considerations for Renters Facing Flood Risks in Houston

In Houston, where approximately 60% of residents are renters, officials are urging flood insurance consideration due to flood risks. Renters insurance typically covers personal property such as furniture and electronics but does not cover flood damage; thus, separate flood insurance is necessary to protect possessions against flooding. Renters should carefully review policy features such as coverage for additional living expenses, which can cover hotel stays if their home becomes uninhabitable, although such coverage is often capped and may not be included in flood insurance policies.

Replacement cost versus actual cash value is another key aspect renters should clarify, as replacement cost insurance covers buying new items, whereas actual cash value accounts for depreciation. While renters insurance generally covers damages from events like fire or theft, most policies exclude flood and mold damage; therefore, renters should consider pairing renters insurance with flood insurance either through the National Flood Insurance Program (NFIP) or private insurers that may also cover additional living expenses. It is essential for renters to understand deductibles and coverage limits, particularly for high-value items that may require separate insurance. Proper documentation of belongings through photos and receipts is recommended to streamline potential claims. Given that NFIP policies take 30 days to become effective, early enrollment before a storm is critical.