Flood Insurance for Rental Properties
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Flood Insurance for Rental Properties

Do I need flood insurance
for my rental property? That’s today’s video. Let’s dive in. Hey. There I’m Clayton Morris. I’m the founder and president
of Morris Invest, which is a turnkey real
estate company, and I’ve been a longtime
real estate investor, and I’ve rehabbed and I
own many, many properties. So today’s question is
particularly relevant depending on where you own
your rental properties. This question came to
us from an investor who asked the question, do
I need flood insurance on a rental property? And the answer is no, you don’t,
if it’s not in a flood zone. So many insurance
companies will obviously– they’ll do their search of
your property, but this is key. You should probably
know this before you purchase your rental property. There are many areas,
many great rental markets across the country, that do
not require flood insurance or those rental properties
are not in a flood zone. For instance, if you’re
in the city of St. Louis, we saw what happened
two years ago where there was an
enormous amount of flooding along the Mississippi River. Well, St. Louis is a
really good rental market, but chances are
you’re going to have to carry flood insurance if your
property sits in a flood plain. So you call, you contact
your insurance company. If you don’t already know when
you purchased the property, it’s probably something
you should look up. It’s very, very simple
to do and it’ll show it right on your tax records. You’ll be able to look up on
the county records and see, is this property
in a flood zone. And you’ll notice the different
designations for your FEMA map. And it’s a very simple
thing to pull up. You’ll have different
designations like AE, or X, and there are some other
designations as well. We don’t need to get
into all those specifics because they can be a little
crazy depending on your flood map, but just know that if
one of those designations shows up under flood
plain, then you’re going to need insurance
on that property. And you may not even
want to consider purchasing the property to begin
with because it could cost you a few hundred extra
dollars for insurance, if that’s important to you. If that could cut into your
overall investing numbers, you may want to consider
finding a property that’s not in a flood zone. Anyway, your insurance
company will let you know. They’re going to
do their own search and they’re going to find
out for you, if you already own this property,
whether or not you need to carry flood
insurance on the property. And I have to say,
it is very important to carry flood insurance
if it’s required. I’ve lived through a couple of
multiple-hundred-year floods. I lived in the state
of West Virginia and I was renting at the time. My entire apartment
complex, because of a flood came through and
destroyed everything. And unfortunately the
owner of that property did not have flood insurance. We, as tenants, had to move
out and find new shelter and that particular
landlord completely lost his rental property. And the insurance
company basically wasn’t able to recoup the
loss because he did not carry flood insurance
on the property, even though that particular
property sat in a flood plain. So it’s very important, if your
property is in a flood plain, to get flood insurance. Definitely, 100%. You want to protect yourself. And it’s a few hundred
dollars a year, but in the end it could save you
an entire property and get your money back. I’m Clayton Morris. I hope this answers
your question. You can always subscribe
to my channel right here. We have just tons of great real
estate investing videos here. We answer your questions. So any questions you have,
throw them in the comment thread below. We will create an awesome
video to answer your question specifically. Plus, we have a lot
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become a real estate investor, everyone. We’ll see you next time.


  • Gabriel Mondragon

    You would think we have no problems with this in Phoenix, AZ!
    Boy, you would be wrong!
    Realestate is a business full of surprises! 😅

  • Mr Ctac

    Its $2300/year in Ky if you go through an insurance company that is backed by FEMA. Its $540/year through a private insurance company like Lloyds of London. Big difference

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