When it comes to landlord flood insurance, it's critical to have enough flood cover to ensure you're financially protected regardless of really bad water damage.
Speaking of losses, floods have become a common risk to properties across the country. And, despite being fairly extensive, standard landlord insurance policies rarely cover damages caused due to floods.
This is because such damages can be very extensive and costly to fix.
In that case, you'll have to purchase landlord insurance with an additional flood cover. This will protect you and your investment in case of a flood from hurricanes, too much rain, storm surge, broken levees or dams, or snow melts.
Properties located in: High-risk flood areas
This includes properties located near coastlines and rivers.
Low valley areas are also at risk of flooding.
These are areas with a 0.2% annual chance of flooding.
Even so, statistics show that about a quarter of flood insurance claims come from these areas.
Before you start thinking that you don't need landlord flood insurance because your rental properties aren't in high-risk areas.
Keep in mind that floods and flash floods usually strike without warning.
If recent times are anything to go by, even properties outside the high-risk areas are prone to the wrath of Mother Nature.
When you take out landlord insurance with flood cover, it will pay for any damages to your building caused by flooding. And even cover the cost of replacing the entire building in the event of a total loss due to flooding.
In addition to the physical structure, this policy will repair or replace the furniture, fixtures, fittings, and other valuables in your rental houses damaged after a flood.
If your property becomes uninhabitable following flooding, the insurance company will cover the cost of alternative accommodation for your tenants during renovations.
You'll find that work can take weeks, or even months to begin as the water needs to first settle down. Imagine how much you'd have to spend out of your pocket to provide your tenants with alternative accommodation if you don't have landlord flood insurance.
Other coverage options include the cost of removing debris, as well as professional fees such as surveyors, solicitors, and architects.
As mentioned earlier, flood damages can be quite substantial.
Here's a guide to help keep your building and contents safer before and after a flood:
You can use the free landlord insurance comparison form, it compares top rated companies, which cover for flooding and building damage.