Climate change is becoming increasingly evident. In recent years, California has experienced a series of devastating natural disasters. Residents across the state suffered immensely from wildfires, extreme heat and flooding.
At such times, climate insurance can provide adaptation incentives, such as fortifying or rebuilding homes after a disaster. Now, if you only rent an apartment, what types of insurance can help you recover from these damages?
Depending on your policy, renters insurance may help reimburse the cost of your belongings damaged by natural disasters. Examples include hailstorms and volcanic eruptions.
Meanwhile, renters insurance may not cover most damages caused by flooding or earthquakes. In addition, if the damage is on the grounds or property itself, landlords insurance may be what you need – but it must be the responsibility of your landowner to purchase this type of policy.
Flood insurance by NFIP
The National Flood Insurance Program (NFIP) provides flood insurance to renters if they live in one of their participating NFIP communities. For renters, the coverage is up to $100,000, but again, it only shields the contents of a unit, not the grounds or the property where you live.
In addition to damages to your possessions, climate insurance may cover expenses related to temporary location if your home becomes inhabitable due to a climate-related event. Some policies may also cover income loss if the event leads to you being unable to work.
These are just some ways insurance can help a renter recover after a calamity. We will never know what climate change has yet to offer, so it would be wise to look at all options that can protect you should you be on the receiving end of its wrath.