North Carolina homeowners are not legally required to purchase flood insurance. however, people who own homes in high-risk flood areas may be required to purchase coverage to qualify for a mortgage. And even people who don’t live in a high-risk area may want to consider flood insurance, since a standard homeowners insurance policy doesn’t pay for flood damage.
Flood insurance is available to homeowners in North Carolina through the National Flood Insurance Program (NFIP), which is a program supported by the federal government, as well as through private insurance companies. .
how much does flood insurance cost in north carolina?
In our research, we found that the average cost of flood insurance for homeowners in North Carolina is $718 per year. Among the cities we surveyed, Raleigh had the highest rates, with an average premium of $944 per year. Residents of Wilson, N.C. paid more per dollar for coverage. they had to spend about $391 for every $100,000 of coverage. Meanwhile, Cary residents only had to spend $176 to receive the same amount of coverage.
North Carolina residents who purchase NFIP flood insurance will find that the price they pay for flood insurance depends largely on whether they live in a high-risk flood area. the elevation of the ground your home is on and the height of the lowest floor of your home have a particularly significant impact on your rates.
do i need flood insurance in north carolina?
Under state law, North Carolina residents are not required to purchase flood insurance. But if your home is located in an area determined by FEMA to be at high risk for flooding, you may need to purchase coverage to be eligible for a federally backed mortgage.
Homes that are located in a flood zone that begins with “a” or “v,” such as ae, ar, or ve, have a 1% or greater chance of flooding each year and need flood insurance to get a mortgage. These houses are often located low above sea level or another body of water, such as the Pamlico Sound, or near a river such as the Catawba.
North Carolina is frequently subject to flooding, including hurricanes and heavy seasonal rains, every year. In extreme scenarios, floodwaters can exit storm drains or other sources, causing flooding in places that would not otherwise be vulnerable.
flood insurance coverage in north carolina
Beyond the maximum dollar limit, there are some limitations on what is covered by nfip flood insurance. NFIP insurance pays to repair or replace damage to the following parts of your home, with separate limits for different parts of your property.
covered under the housing portion of nfip insurance:
covered under the property portion of nfip insurance:
Some parts of your property are specifically excluded from nfip flood insurance, usually because they are highly valuable or particularly susceptible to flood damage, such as landscaping or an outdoor pool.
what the nfip insurance does not cover:
NFIP flood insurance also does not cover additional living expenses or loss of income. If you want or need coverage for anything not covered by NFIP insurance or need more than the coverage limits NFIP provides, consider purchasing a policy from a private North Carolina flood insurance company. private flood insurance companies often have a wider range of coverage available and are more likely to be able to meet your needs.
How do I know what flood zone my house is in?
North Carolina homeowners who are considering purchasing flood insurance through the NFIP can easily determine which flood zone they are in using the Flood Hazard Information System’s (FRIS) online mapping tool. ) of North Carolina.
The tool shows the location of areas with high risk of flooding, so you can understand the probability of flooding where you live. The tool even includes a calculator that uses your home’s square footage, elevation, and building value to give an estimate of how much you could pay for flood insurance.
Please note that the information provided by the tool is an estimate, not an exact quote. You’ll need to contact a local North Carolina flood insurance agent who works with the NFIP to determine the exact rate you’ll pay for flood insurance.
Which is better for North Carolina homeowners: public or private flood insurance?
Historically, the most affordable and accessible option for flood insurance has been through the NFIP, but in recent years, the private flood insurance industry has seen rapid improvement in both rates and coverage. accessibility. North Carolina residents may want to look to private insurers, especially if they can’t get the right level of coverage or if the NFIP is quoting them a prohibitively high price for flood insurance.
There are some potential drawbacks to be aware of. First, if you are required to purchase flood insurance as a condition of your mortgage, your lender may require that a private policy meet the same level of coverage as an NFIP-backed policy. Second, many private flood insurance companies are new and unproven, so there is a greater chance that your insurance company may not be able to pay your claim in the event of a major disaster.
Insurance companies are at greatest risk of being unable to pay claims when a large number of people file expensive claims at the same time, such as widespread flooding, similar to what happened after Hurricane Florence in 2018.
Furthermore, while almost anyone can buy flood insurance through the NFIP, that’s not necessarily the case with private insurance. If your home is located in a very high-risk area, such as the Outer Banks, some private flood insurance companies may charge you very high prices. and some may refuse to offer you flood coverage. If you’re denied coverage, you can check with other insurers to find a better price, but NFIP may be your only option.