Homeowners insurance doesn't cover floods: How to protect your home in North Carolina
Homeowners insurance doesn't cover floods, so purchasing separate flood insurance is crucial in North Carolina, especially in high-risk areas.
Posted — UpdatedThe Atlantic hurricane season runs from June 1 through Nov. 30, but heavy rains and flooding can happen any time.
It’s important to know that in North Carolina, homeowners insurance policies do not cover flood damage.
Many homeowners insurance companies also sell flood insurance.
Also, just because a home is not in a designated floodplain does not mean flood damage never happens.
Most flood insurance policies come with a 30-day waiting period, so waiting until a storm is forecast will be too late to protect your property.
The federal government offers insurance for direct flood and flood-related damage, including mudslide and erosion under the National Flood Insurance Program (NFIP).
What is a flood?
● Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above.
How much does North Carolina flood insurance cost?
Annual flood insurance rates in North Carolina range from $200 to nearly $4,000, depending on where you live.
Other factors that impact rates include the elevation a home sits on and the height of the lowest floor of the home.
Is flood insurance required in North Carolina?
North Carolina homeowners aren't required by the state to buy flood insurance. However, your mortgage company may require it if your home is in an area with a high risk of flooding.
There are also federal requirements.
These homes are typically located at a low elevation above sea level, like the Outer Banks, or near a river, like the Catawba. Their proximity to water means that they have a greater chance of flooding compared to a home that is inland.
NFIP flood insurance companies in NC vs. private flood insurance
Since the NFIP is a federal program, a policy costs the same regardless of who you buy it from.
Companies that offer NFIP flood insurance include: North Carolina Farm Bureau, Selective, Assurant, The Hartford, Allstate, Wright National, USAA, Bankers Insurance, Auto-Owners and Trisura among others. Federal coverage (NFIP) is paid out by the government and financed through taxpayer money.
Private flood insurance covers the structure of your home and its contents from water damage caused by a flood. What separates this option from other flood insurance policies is that it is not backed by the federal government.
Policies under the federal program are able to pay out flood damage claims for as long as the program receives funds. A private flood insurance company, on the other hand, is a for-profit company that relies on either an insurance policy of their own or money collected from premiums to pay out damages to claimants.
Some companies offer both NFIP and private flood insurance. People looking to purchase flood insurance should compare prices and select a policy that best fits their needs.
The largest private flood insurance companies in North Carolina include AIG, AXA SA, Liberty Mutual, Zurich, Assurant, Sompo, Berkshire Hathaway, Allianz, Transverse, Swiss Re, Arch Captial, Trisura and Allstate among others.
What does an NFIP cover?
A flood insurance policy can cover both your home and its contents.
For residential properties, you can secure coverage up to $250,000 for the building and $100,000 for the building contents.
For commercial properties, you can secure coverage up to $500,000 for the building and $500,000 for the building contents.
Contents and building coverage are purchased separately, and there are always separate deductibles.
How you’re repaid: What’s the difference between actual cash value (ACV) and replacement cost value (RCV)?
How many people in North Carolina have federal flood insurance through NFIP?
Does my renters policy cover water damage caused by flood?
No.
A renters or tenant’s policy does not cover loss due to flood. If you rent, be sure to ask your landlord if the property is covered in case of flood. Renters may still want their own policy to cover belongings. They can purchase coverage through the NFIP or Write Your Own program.
Safety when returning to a flooded home
- If you left home during the storm, return to your home only after local officials have said it is safe to do so.
- Turn around, don’t drown: Don’t drive through flooded areas or standing water. As little as 6 inches of water can cause you to lose control of your vehicle.
- Don’t walk into floodwater, it can be full of chemicals and dangerous debris.
- Underground or downed power lines can also electrically charge the water.
- When entering your home, do not use matches, lighters, candles or any other flames. Gas may be trapped inside your home. Use a flashlight instead.
- Do not touch electrical equipment if it is wet or if you are standing in water. Turn off the electricity to prevent electric shock if it is safe to do so.
How to document damage after a flood
It includes taking pictures and video of:
- Exterior damage to the home
- Damage to furniture or appliances
- Damage to the inside of closets and cabinets
How to start a flood insurance claim in North Carolina
- Start your claim: When your property floods, report the loss to your flood insurer as soon as possible. They will assign an insurance adjuster to guide you through the claims process, which includes an in-person or remote (when appropriate) property inspection within a few days. If you need help finding your insurance carrier, contact FEMA Mapping and Insurance eXchange (FMIX) center at 877-336-2627.
- Document your loss: Return to your home when it’s safe. Take reference photos and videos of your flood-damaged property and personal items. Include flood water lines inside and outside of the home. Document the make, model and serial number for appliances and electronics to share with your adjuster.
- Start cleanup: Keep samples of flood-damaged items (carpet or other flooring, curtains, etc.) to show your adjuster. After you take photos or videos of the flood-damaged items, throw out contents that pose a health threat. Do everything you can to prevent the growth and spread of mold.
- Meet with your adjuster: Upon meeting your flood insurance adjuster, ask to see their Flood Control Number (FCN) card. The FCN card will have an active date for the current storm year and a picture I.D. The adjuster will answer your questions and prepare a damage estimate for your review.
- Receive payment: Your claim payment amount will be based on your policy’s coverage and the supporting documentation you provide to your adjuster. You are responsible for submitting the required documentation and meeting FEMA’s deadlines related to your NFIP claim. If you have a mortgage, your claim check will be written to you and the mortgage company.
Who can I call if I have more insurance coverage questions?
You should first try to contact your local insurance agent or your insurance company for specifics about your policy.
The North Carolina Department of Insurance is also available to help consumers with insurance-related questions. You may call the Consumer Division at 855-408-1212.
The NFIP will respond to questions about the federal flood insurance policy and claims. NFIP can be reached by calling 800-427-4661.
If I have problems with my insurance company, agent or adjuster, where can I turn?
If you believe you are being treated unfairly, you may file a complaint with the North Carolina Department of Insurance. You may call the Department's Consumer Division at 855-408-1212 for help.
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