Updated Nov 3, 2022
Updated Nov 3, 2022
Between 2019 and 2021, the United States experienced 56 natural disasters, each exceeding $1 billion in losses. 2021 alone saw $145 billion in damages, making it the third-highest cost year on record.
If you’re a rental property manager considering a natural disaster prep plan – the time is now. In fact, preparing your rental homes for disaster is crucial to your financial well-being and tenants’ safety.
Keep reading for tips on protecting your rental home during disasters. We’ll discuss the importance of landlord insurance and storm preparation plans, so you’ll have peace of mind when a natural disaster strikes.
Landlord insurance is a type of insurance policy designed to protect rental property owners from financial damages. Landlord liability coverage protects you if a renter sues for an incident on your property. Property coverage helps you pay for damage from natural disasters.
Your tenants likely have renters insurance, which covers the personal property they keep in the home. Most insurance companies offer both types of coverage – each of which is equally as important to you as a landlord.
Landlord insurance is critical to natural disaster preparedness. Without a policy, you’ll pay for property damages out of pocket. You’ll also lose your stream of income if the property becomes uninhabitable. With a landlord insurance plan, you’ll have financial assistance to repair your property and compensate for income loss.
If you own a home you aren’t yet renting out, ensure you have adequate coverage to prepare for the worst.
Homeowners insurance is crucial to your financial well-being – especially if you live in a region prone to natural disasters. Homeowners insurance covers harm to your belongings and structural damage from perils.
Perils are catastrophes like wildfires, tornadoes, and lightning strikes that can leave your home in shambles. These plans are subject to deductibles before your coverage kicks in. However, you’ll likely meet your deductible if faced with major home repairs.
If you have a home warranty plan, that’s an excellent way to afford wear and tear on your household appliances. However, these plans won’t help you when natural catastrophes strike – so traditional insurance is a must.
Now that you understand how landlord insurance can protect your rental property and finances, we’ll review the tactical steps you can take to prepare for natural disasters, like:
The following sections will provide tips for preparing an emergency plan for your rental home. Remember that most of the natural disaster prep process is up to the tenant; they’re the main player in ensuring their home – rented or owned – is ready for mayhem. However, you can provide them with some tools and advice to keep them as safe as possible on the property.
A hurricane is a severe storm characterized by high winds and heavy rain. These monstrous storms form in coastal areas and grow stronger as they rotate over warm waters. Major hurricanes bring wind speeds exceeding 100 miles per hour, making them especially dangerous to coastal homes. Hurricane preparation is a must if your rental property is near the East Coast or the Gulf of Mexico.
A tornado is a violent, rotating funnel of clouds that forms from an existing storm. You must prepare your rental property for tornado damage – especially if you have tenants in Tornado Alley. This region in the Central United States is at higher risk of tornado formation than anywhere else in the country.
Tornadoes intensify the effects of a severe thunderstorm. The most intense tornadoes can send cars flying through the air and turn shards of trees and glass into bullets. For these reasons, tornado prep is vital to your rental home and tenants’ well-being.
As a rental property manager, you should keep your area’s flood risk on your radar.
Riverine floods occur when a river overflows from heavy rainfall, melting snow, or a burst dam. You should beware of riverine flooding if your rental property sits near a river or on a flood plain.
States prone to hurricanes are at the highest risk for coastal flooding disasters. Coastal flooding occurs when a storm sends seawater rushing inland. Florida, Georgia, and Louisiana are among the top states for flooding and water damage in the U.S.
Flood damage worsens when the water recedes into its source. The water can wash away crops, transport hazardous materials, trigger landslides, and create rampant breeding grounds for mold and mosquitoes.
Visit FEMA’s Flood Map Service Center for information on your area’s flood risk.
Severe winter storms, called blizzards, are characterized by high winds, low visibility, and heavy snowfall. Blizzard prep is crucial for rental homes in areas of heavy snowfall, such as the upper Midwest region of the U.S. Great Plains.
Blizzards are dangerous to homes because they can cause roof damage from snow accumulation and water damage from melting ice. They can also cause power outages and snow buildup, leaving tenants trapped inside with no electricity.
A wildfire is a fire that burns uncontrollably throughout natural vegetation.
These disasters often start as ground fires that ignite in hot, highly organic soil and burn under the earth’s surface. Surface fires are wildfires that light and spread rapidly from plant to plant. Lastly, crown fires work to treetops and burn through canopies.
According to the Insurance Information Institute, approximately 4.5 million U.S. homes are at high risk of wildfire damage. States with hot, dry weather, such as California, Arizona, and Texas, are most prone to these catastrophes.
An earthquake occurs when the earth’s plates shift, causing the ground to shake violently. These events are dangerous because they can result in collapsed buildings, shifted foundations, and falling trees.
Properties near the San Andreas Fault in California are most prone to earthquake damage. Other earthquake risk regions include Alaska’s southern coast, Hawaii Island, the Southern U.S., and the Central Mississippi River Valley.
The table below provides additional resources to get you and your tenants through a natural disaster. As you know, preparation is key – so it’s best to know what support is available before catastrophes unfold.
Resource | About |
Federal Emergency Management Agency (FEMA) | FEMA is a United States federal agency dedicated to developing strategic disaster preparedness plans and relief resources. The agency operates with the goal of “helping people before, during, and after disasters.” |
American Red Cross Disaster Relief | The American Red Cross Disaster Relief program provides victims with aid, resources, and support after disasters. The organization also offers a shelter program for disaster victims needing emergency housing. |
Ready.gov | Ready is a public service campaign that empowers Americans to take disaster preparedness into their own hands through information, planning, and community collaboration. |
National Flood Insurance Program (NFIP) | The NFIP provides flood insurance plans to help landlords and renters plan for the worst. Flood damage isn’t covered by traditional homeowners insurance, so this extra coverage is crucial for combating devastating damage. |
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