NFIP Tenant Coverage

NFIP tenant coverage refers to flood insurance policies available to tenants (renters) under the National Flood Insurance Program (NFIP). This type of coverage is designed to protect the personal property of tenants and, in some cases, improvements or betterments they have made to their rented premises.

1. Coverage Forms for Tenants

Tenants can purchase contents coverage under the following NFIP policy forms:

Dwelling Form: Designed for residential renters, including those in single-family homes, apartments, or condos.
General Property Form: Available for tenants renting spaces in non-residential buildings.

2. Contents Coverage

Under the Dwelling Form and General Property Form, tenants may purchase contents coverage, which includes coverage for building improvements and betterments.

The maximum amount payable for improvements and betterments in the building occupied by the policyholder is 10 percent of the contents coverage amount shown on the declarations page.
Improvements and betterments include fixtures, alterations, installations, and additions that become part of the tenant-occupied building, if acquired or made solely at the tenant’s expense.
Use of this option does not provide an additional amount of insurance over the amount of contents coverage shown on the declarations page. Coverage for contents solely owned by the tenant/lessor must be on a separate policy in the name of the tenant/lessor only. Refer to the SFIP Article III.B.6.

Contents Coverage Limits:

Residential tenants/lessors: Up to $100,000 in personal property coverage.
Non-residential tenants/lessors: Contents values up to a maximum of $500,000.

3. Improvements and Betterments

For tenants who have made improvements to their rented space, NFIP policies provide limited coverage for these alterations:

Dwelling Form and General Property Form includes coverage for building improvements and betterments made by the tenant/lessor.
Coverage is limited to 10% of the total contents coverage limit shown on the policy's declarations page.

4. Important Eligibility Rules

Tenants must have personal property located inside the insured building at the described location.
If the building is not fully enclosed, personal property must be secured to prevent flotation out of the structure.
Coverage is not available for personal property stored outside the building.

5. Exclusions

Certain types of property are excluded from NFIP tenant coverage, including:

Automobiles, motorcycles, and other vehicles.
Property kept in basements (with some exceptions like air conditioners and washers/dryers).
Outdoor property such as fences, patios, and swimming pools.

6. Waiting Period

Policies typically have a 30-day waiting period before coverage becomes effective, unless the purchase is tied to a loan or certain map changes.

7. Additional Considerations

Group Flood Insurance Policies (GFIP): Tenants may be eligible for coverage under a GFIP if they have received disaster assistance. GFIP coverage is limited to a 36-month term.
Deductibles: Tenants must select a deductible amount, which applies separately to building coverage (if applicable) and contents coverage.

This page contains information about the NFIP. Find more NFIP Resources.