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North Carolina flood insurance: What homeowners should know
Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Do North Carolina homeowners need flood insurance?
Most insurance experts recommend that North Carolina homeowners have a flood insurance policy in addition to home insurance. More than 1.3 million acres are at risk of flooding here, which rounds out to about $8 billion worth of property. Floods affect all North Carolina regions, with the central area of the state particularly vulnerable.
Standard homeowners and renters policies do not cover flood damage, so many experts recommend purchasing a separate flood insurance policy or endorsement. Some private carriers offer flood coverage as an add-on; however, many do not. You can also buy coverage through the National Flood Insurance Program (NFIP), which is managed by the Federal Emergency Management Agency (FEMA).
NFIP policies pay up to $250,000 for residential building losses and up to $100,000 for contents (you must buy building and contents coverage separately). Alternatively, private flood insurance may offer higher limits — plus other advantages, like replacement cost protection for contents and structures and loss of use coverage — but is typically more expensive than an NFIP policy.
News
On Sept. 28, 2024, President Biden declared a major disaster for North Carolina after Tropical Storm Helene touched down. FEMA has been approved to provide state, local, tribal and some private nonprofit organizations with financial assistance related to flood damage. If you’re in North Carolina, some important things to know include:
- FEMA has been authorized to provide direct assistance to individuals and households in the following counties: Alexander, Alleghany, Ashe, Avery, Buncombe, Burke, Caldwell, Catawba, Clay, Cleveland, Gaston, Haywood, Henderson, Jackson, Lincoln, Macon, Madison, McDowell, Mitchell, Polk, Rutherford, Transylvania, Watauga, Wilkes and Yancey Counties and the Eastern Band of Cherokee Indians.
- On Oct. 5, FEMA announced it’s authorized to give assistance to homeowners in Mecklenburg and Swain counties.
- Funding and services may be used for: repair, restoration or construction of housing or private bridges; purchase and placement of travel trailers or manufactured housing units; and repair of structures as a minimum protective measure.
- According to FEMA, the fastest way to apply for aid is by submitting a form at disasterassistance.gov. You’ll need to enter your city, select the storm that affected you, select your county and note which types of assistance you need (broken down by property damage, emergency needs and other expenses). You’ll be asked for details about the type and extent of damage before you can provide your contact information and submit the form. Alternatively, you may call 1-800-621-3362.
How much does flood insurance in North Carolina cost?
The average cost of an NFIP flood policy in North Carolina is $874 per year. FEMA determines flood insurance costs based on its Risk Rating 2.0 system. The new system takes into account a broader number of factors that may affect the cost of flood insurance in NC. If you get flood insurance through NFIP, your premium will be determined based on variables that include:
- Age and design of your property
- Flood zone in which your property lies
- Location and elevation of the property and its utility structures
- Type of coverage, such as building, contents or both
- Flood frequency in your flood zone
- Type of floods that take place in your zone, such as river overflow, storm surge and heavy rainfall
- Distance to a water source
Private insurers may consider different factors or weigh criteria differently. Experts recommend requesting a quote from a flood insurance provider or speaking with a licensed flood insurance agent in your area to obtain the most accurate estimates for flood insurance premiums.
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Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
When to purchase flood insurance
If you’re planning to purchase your home with a mortgage, your lender may require you to carry both home and flood insurance. Even if that’s not the case, if you live in a moderate- or high-risk flood zone, buying flood insurance may be worthwhile. You can find your property’s flood risk using the floodplain mapping tool on the North Carolina Flood Risk Information System website. And speaking with a licensed insurance agent could provide more context on the value of flood coverage for you and your home.
When purchasing North Carolina flood insurance, it’s better to buy it before you need it. In most cases, NFIP coverage takes effect 30 days after purchasing a policy, so buying a policy as a storm approaches may not provide coverage in time. However, the NFIP waives the 30-day waiting period under certain circumstances, such as:
- When you buy a policy while taking out or refinancing a mortgage
- When you alter your coverage when renewing an existing flood insurance policy
- When the flood damage is caused by burning or flooding of adjacent federal property
When you purchase a house or commercial property within 13 months of the property being deemed high-risk for flooding, the NFIP reduces the waiting period to one day.
How to purchase flood insurance in North Carolina
There are two ways to buy a flood insurance policy in North Carolina. While most policies are part of the NFIP program and backed by the federal government, some private policies are also available. Remember that buying a private homeowners insurance policy won’t mean you’re covered for flood insurance; you need a separate flood-specific policy or endorsement.
To purchase flood coverage in North Carolina, you can:
- Check with your current homeowners or renters insurance provider to see if it offers private flood insurance or policies through the NFIP.
- If your current carrier doesn't offer flood coverage, or you are unsatisfied with your quoted rates, you can explore quotes for private or federal coverage with other carriers.
- If you know you want to purchase coverage, you can use the FEMA provider lookup tool to find insurers in your area that have NFIP flood insurance policies.