Farmers Insurance Flood Insurance: How to Get Coverage for a Rental

Natural disasters are becoming more frequent and severe due to climate change, making flood insurance a critical consideration for property owners—especially those renting out their homes or investment properties. Farmers Insurance offers flood insurance policies that can protect rental properties from devastating financial losses. Here’s everything you need to know about securing flood coverage for your rental.

Why Flood Insurance Is Essential for Rental Properties

Flooding is one of the most common and costly natural disasters in the U.S., and standard homeowners or landlord insurance policies typically do not cover flood damage. If you own a rental property in a flood-prone area, relying solely on basic insurance could leave you financially vulnerable.

The Rising Threat of Floods

With rising sea levels, stronger hurricanes, and unpredictable weather patterns, even properties outside traditional flood zones are at risk. According to FEMA, nearly 40% of flood insurance claims come from areas considered low or moderate risk.

Financial Protection for Landlords

Without flood insurance, landlords may face:
- Massive repair costs (e.g., structural damage, mold remediation).
- Lost rental income if the property becomes uninhabitable.
- Legal liabilities if tenants suffer due to unaddressed flood risks.

How Farmers Insurance Flood Insurance Works

Farmers Insurance partners with the National Flood Insurance Program (NFIP) and may also offer private flood insurance options. Here’s how their coverage can safeguard your rental property.

Coverage Options

1. Building Property Coverage – Protects the structure, including:

   • Foundation, walls, and electrical systems.
   • Plumbing, HVAC, and built-in appliances.

2. Personal Property Coverage (for Furnished Rentals) – Covers:

   • Tenant-owned belongings (if included in the lease agreement).
   • Landlord-owned furniture or appliances.

3. Additional Living Expenses (ALE) – Helps cover temporary relocation costs for tenants if the property is uninhabitable.

Policy Limits and Deductibles

• NFIP policies cap at $250,000 for residential buildings and $100,000 for personal property.
• Private flood insurance through Farmers may offer higher limits for high-value properties.

Steps to Get Flood Insurance for Your Rental

1. Assess Your Property’s Flood Risk

• Check FEMA’s Flood Map Service Center to see if your rental is in a high-risk zone.
• Consider historical flood data in the area, even if it’s not officially designated as high-risk.

2. Choose Between NFIP and Private Flood Insurance

• NFIP Policies – Government-backed, widely available, but with coverage limits.
• Private Flood Insurance – May offer higher limits, faster claims, and additional perks like basement coverage.

3. Contact a Farmers Insurance Agent

• Farmers agents can help compare NFIP and private options.
• They’ll guide you on bundling flood insurance with other landlord policies for potential discounts.

4. Review and Customize Your Policy

• Ensure coverage aligns with your property’s value and potential risks.
• Discuss optional add-ons like sewer backup coverage, which isn’t always included.

5. Educate Your Tenants

• Inform renters about flood risks and emergency preparedness.
• Clarify what their renters insurance should cover (e.g., personal belongings).

Cost Factors for Flood Insurance

Premiums vary based on:
- Location (high-risk zones = higher premiums).
- Property elevation (homes above base flood level may qualify for lower rates).
- Deductible choices (higher deductibles can reduce premiums).

Real-Life Scenarios: When Flood Insurance Saves Landlords

Case 1: Hurricane Damage in a Moderate-Risk Zone

A landlord in Houston thought their rental was safe from flooding—until Hurricane Harvey hit. Thanks to their Farmers flood policy, they received $200,000 for structural repairs, avoiding financial ruin.

Case 2: Flash Floods in the Midwest

An Iowa rental property suffered basement flooding after heavy rains. The landlord’s NFIP policy covered the damage, while the tenant’s renters insurance handled personal property losses.

Common Misconceptions About Flood Insurance

“My Landlord Policy Covers Floods”

Most landlord insurance excludes flood damage. Always verify coverage details.

“I’m Not in a Flood Zone, So I Don’t Need It”

As climate change reshapes risk maps, even inland properties face unexpected flooding from heavy rainfall or overwhelmed drainage systems.

“Flood Insurance Is Too Expensive”

NFIP premiums can start as low as a few hundred dollars annually—far less than the cost of rebuilding after a disaster.

Final Tips for Landlords

• Don’t wait for the next storm—flood insurance has a 30-day waiting period for NFIP policies.
• Document your property’s condition with photos and maintenance records to streamline claims.
• Reassess coverage annually, especially if local flood risks change.

By securing flood insurance through Farmers, landlords can protect their investments and provide safer housing for tenants—no matter what the weather brings.