Most parts of the United States are subject to at least one kind of natural disaster, and some areas may be impacted by several different kinds. These disasters can often be tragic and cause devastating losses in lives and property. As a property owner, it’s always a good idea to educate yourself on what natural disasters could take place in your area. Then, you can create a plan for dealing with them during and after they occur.
What is a Natural Disaster?
A natural disaster is a significant event that occurs because of normal functions and actions of the Earth and its forces. Examples of natural disasters include:
- Extreme weather, hot or cold
Natural disasters, depending on the severity, can affect an area economically and cost millions of dollars of state and federal money to help the region recover. The impact on a property owner can be significant and even in the best case scenario, natural disasters can create plenty of stress, damage and tenant issues for landlords.
How To File An Insurance Claim
Kim and Scott Hampton of Hampton & Hampton manage around 1,000 rentals in Central Florida.
They recently had to file 60 claims on their rentals due to hurricanes that hit in the fall of 2017.
We had them on our podcast to discuss the tips and tricks they’ve learned when it comes to filing a claim and dealing with assignment of benefits.
To see resources mentioned in the video below you can visit the show notes here.
Listen to how one of our RentPrep landlord’s dealt with flooding
Derek is a landlord in Cedar Rapids and shares how he dealt with massive flooding that occurred in one of his rentals.
A big takeaway from the interview with Derek is that the government stepped in and provided disaster relief so it might not be wise to rush to fix everything. Make sure you’re taking advantage of any government programs to help landlords and renters.
You can listen to more Landlord podcast episodes here.
Is It The Landlord’s Responsibility To Board Up The Rental?
Sometimes the answer to questions on landlord responsibilities can be vague.
This question was posted in our Facebook group and here is what the general consensus is.
Like most things the technicality of this question can be answered by what is in your lease.
If the lease doesn’t address storm shutters than it becomes a lot more vague. However, most landlords agree that you’re protecting your investment so you should take the precautions and not rely on your tenants.
Regional Risk Factors
The biggest natural disaster risks can be broken down into regions, where certain types of natural disasters are most likely to occur. There is no single area that is completely safe from natural disasters, but some areas have increased odds while others remain relatively disaster free for long periods of time. Let’s review the biggest natural disaster risks for each major geographic region of the United States.
Northeast United States
This area is subject to incredibly powerful storms in this area are called nor’easters. These macro storms get their name from the direction the wind is coming and bring heavy rain or snow, hurricane-force winds and coastal flooding in some instances. Severe winter storms can cause power outages that last for a few days or a few weeks in extreme cases. These storms can also interrupt road travel and cause property damage.
Southeast United States
In the states that border the Gulf of Mexico and the Atlantic Ocean, the biggest natural disaster risk has to be hurricanes. From the first of June through the end of November, the area is susceptible to tropical storms and hurricanes. Hurricanes bring strong winds, heavy rain, and high waves that can affect coastal communities. A hurricane’s heavy rain can cause flooding inland so distance from the coast is not always a relief from damage. Tornados are also common in this region and can cause plenty of damage.
Midwest United States
From North Dakota down to Louisiana, the likelihood of tornados here are high during certain parts of the year. Known as Tornado Alley, this region generates many tornados every year. With strong winds, tornados can decimate a small town in just a few minutes, and cause extensive damage and loss of life. The Midwest is also subject to flooding disasters due to heavy spring rains.
Mountain West United States
Due to the dry nature of the region, the Mountain West’s biggest risk comes from wildfires. With huge expanses of dry forests and acres of grassland, a small spark can ignite a wildfire that can threaten homes and lives. Another risk of natural disaster in the Mountain West region comes from earthquakes, as several significant fault lines run throughout the region. While there hasn’t been a large earthquake in the area for decades, scientists have determined that it’s not a matter of if, but when.
West Coast United States
Similar to the Mountain West, the West Coast is most likely to be affected by wildfires, but the increased activity of earthquakes in this region catapult this type of natural disaster to the top of the risk list. Even moderate earthquakes can cause damage to structures, and the region has a history of several large earthquakes that have resulted in extensive damage and loss of life.
Natural Disaster Risk Areas
Thanks to decades of study and tracking, scientists and researchers can calculate the areas of the country with the highest risk of natural disasters as well as those places with the lowest risk of natural disasters. Several reports have been created to give residents an idea of what kinds of natural disasters they are most likely to face, depending on where they live.
Here is one report that ranks the top 10 states most likely to have natural disasters, as well as what residents are most likely to encounter there:
- Texas—tornados, floods, wildfires, hurricanes, floods
- California—earthquakes, wildfires, flooding, severe weather, tsunami
- Oklahoma—tornado, snow, flooding, wildfires
- New York—snow, ice, tropical storms
- Louisiana—hurricanes, flooding
- Kentucky—flooding, tornados, mudslides, severe weather
- Arkansas—heavy rain, snow, ice, tornados, flooding
- Missouri—ice storms, snow, tornados, flooding
This report reveals both the highest risk cities, as well as the safest cities, in the United States:
High Risk Cities
- Dallas-Plano-Irving, Texas
- Jonesboro, Arkansas
- Corpus Christi, Texas
- Houston, Texas
- Beaumont-Port Arthur, Texas
- Shreveport, Louisiana
- Austin, Texas
- Birmingham, Alabama
Low Risk Cities
- Corvallis, Oregon
- Mt. Vernon-Anacortes, Washington
- Bellingham, Washington
- Wenatchee, Washington
- Grand Junction, Colorado
- Spokane, Washington,
- Salem, Oregon
- Seattle, Washington
It’s easy to see that where the Southeast and Midwest intersect, there are more chances for residents to encounter natural disasters. It’s always a good idea for landlords and property owners in general to get familiar with the risks associated with their region, so that proper preparation can begin.
Landlord Plan for Natural Disasters
No matter where you live in the United States, as a homeowner and landlord, you should find out what natural disasters may occur where your properties are located. There should be plenty of state and local resources on how to prepare physically for a natural disaster.
As a property owner, consider reviewing your current insurance policies and see what kind of coverage you have signed up for. Some areas require separate insurance for certain disasters that is outside of a standard policy. For example, if your rental property is located on a flood plain, your standard homeowner’s insurance may not cover any damage by a flood and you would need to purchase a separate insurance policy for floods. Follow your insurer’s advice on listing the features of the property and even taking pictures to document everything before disaster strikes. Also, educate your tenant on renter’s insurance.
Keep your information about insurance and so forth in a safe place so you can access it after the natural disaster occurs. If you live in the same area as your rental property, keep hard copies of important documents where you can access them easily. It’s a good idea to create digital copies and store them in the cloud or in an online storage facility like Dropbox or as attachments to an email. Even if you are without a computer or power, you will eventually be able to access the documents. They may be the only versions left if your own home is affected severely.
Tenants and Lease Agreements
It’s also important for landlords to become familiar with the laws concerning the destruction of rental property and how that affects the lease agreement. If the laws are vague or non-existent, landlords can include wording in the lease agreement for clarity in the event of a natural disaster that destroys or otherwise makes a rental property uninhabitable. For example, will rent be temporarily abated while the property is being restored or repaired or will the lease be dissolved?
In other words, make sure the lease agreement has specific wording that covers provisions if the rental property is partially or completely destroyed. Of course, check with a landlord tenant attorney to ensure that your lease is compliant with state laws on the subject.
Depending on what types of natural disasters your area is prone to, there may be some things you can do to minimize damage to your rental property. For example, if your rental is in a high hurricane area, consider replacing standard windows with impact resistant glass and installing hurricane shutters. In an earthquake area, take the time to anchor large appliances, like refrigerators, with hooks and straps. For rental properties in wildfire zones, choose landscaping that places shrubs and trees several feet away from a structure. Taking the time now to prep a rental property can mean the difference in thousands of dollars worth of damage and may even lead to keeping tenants safer.
Other factors to consider when it comes to rental properties and natural disasters:
- Whether a lease is terminated because of a disaster.
- What happens to the tenant if the rental property is uninhabitable.
- If the tenant’s job and income is affected by the disaster and how that can impact the ability to pay rent.
- How the tenant might pay rent on time if normal methods are not stable (mail delivery, electronic banking, etc.).
- How tenants become informed about the steps for them to recover from the loss of personal belongings or injury claims due to the disaster through FEMA or other avenues, as well as from their renter’s insurance policy.
In order to minimize the amount of stress and to ease the financial burdens for landlords in the event of a natural disaster, the best advice is to be prepared. While there is no way to predict where and when a natural disaster will take place, you can control your level of preparation and ensure the best possible scenario for your property and your tenants.
Centers for Disease Control and Prevention: Natural Disasters and Severe Weather
USA.gov: Disasters and Emergencies
Red Cross: Prepare for an Emergency
You can also go online and search for your state’s division of emergency management or emergency department for resources and guidance specific to your state.
What steps have you taken to protect your property from a natural disaster and minimize the stress of a devastating aftermath? Please share this article and let us know your thoughts in the comments section below.