Flood insurance in North Carolina

In North Carolina, flooding is quite common during hurricane season. Residents face a high risk of property damage, but standard homeowners and renters insurance policies do not cover flood damage. Separate flood insurance is needed to protect oneself economically against flooding.

Adding flood insurance is relatively affordable in North Carolina, but the total cost varies from insurance company to insurance company and depends on several factors, including geographic location. North Carolina citizens can purchase flood insurance privately through an insurance company, but also through the National Flood Insurance Program (NFIP), administered by the Federal Emergency Management Agency (FEMA).

Why do North Carolina homeowners need flood insurance?

In 2022, the hurricane season lasted longer than usual, with Hurricanes Ian and Nicole causing severe storms and flooding in late September and early November. But the Atlantic coast is not the only region in North Carolina at risk of flooding.

Flooding, often severe, affects all areas of North Carolina, with the central regions of the state particularly at risk. Statewide, 86 flash flood warnings were issued in 2022 and more severe storm warnings were issued than in any other year since 2012.

Standard homeowners and renters insurance policies do not cover flood damage, so many experts recommend a separate flood policy. NFIP policies cover up to $250,000 for residential building damage and up to $100,000 for contents (building and contents coverage must be purchased separately). It is also possible to take out private flood insurance, which may offer higher limits and other benefits, such as replacement cost protection for contents and structures and coverage for loss of use, but is likely to be more expensive.

Cost of flood insurance in North Carolina.

According to FEMA, NFIP claims in 2019 averaged $52,000 per claim nationwide. In the same year, homeowners paid an average flood insurance premium of about $700. FEMA determines flood insurance costs based on its Risk Assessment System 2.0. Factors that influence the cost of flood insurance include the following.

• The age and structure of the property
• The flood zone in which the property is located
• The location and elevation of the property and its utility structures
• the type of coverage, i.e., for the building, the contents, or both
• the deductible levels.

Private insurers may consider different factors or weight the criteria differently. To get an accurate estimate of flood insurance premiums, experts recommend getting a quote from a flood insurance provider or contacting a licensed insurance agent in your area.

When is it appropriate to take out flood insurance?

If you live in an area at moderate or high risk of flooding, taking out flood insurance in advance can be an important financial protocol. You can determine your property's flood risk by using the North Carolina Flood Hazard Information System's flood zone mapping tool. In general, it is worth considering flood insurance if you live in a high-risk county, including Wake, Guilford and Watauga counties, as well as areas along the coast.

In most cases, you cannot file a claim with the NFIP within 30 days of purchasing the policy, so purchasing a policy during a storm may not provide timely coverage. However, the NFIP waives the 30-day waiting period under certain circumstances, such as

• when the policy is taken out as part of a mortgage or mortgage refinance
• when coverage is changed when an existing flood insurance policy is renewed
• when flood damage is caused by fire or flooding of adjacent federal property.

When you purchase a home or commercial property within 13 months of the date the property was considered a high risk of flooding, the NFIP reduces the waiting period to one day.

How do I purchase flood insurance in North Carolina?

If you already have commercial, home or renter's insurance, you can ask your agent if the insurer offers private flood insurance or NFIP policies. You can also find insurers participating in the NFIP by using the Provider Finder on FEMA's website. If you are buying a new home, you can purchase a flood insurance policy at the time of signing.

Frequently asked questions.

Does my policy cover flood damage?

No, flood damage is not covered by home or renters insurance. For flood damage to be covered, you must have separate flood insurance with a private insurer or the National Flood Insurance Program.

How do I know if my home in North Carolina is at risk of flooding?

To find out if your property is at risk of flooding, visit the North Carolina Flood Risk Information System website and enter your address. The system will provide you with your flood zone, risk information, and estimates of monthly and annual flood insurance premiums.

How much does flood insurance cost in North Carolina?

According to the Federal Emergency Management Agency, National Flood Insurance Program policies cost an average of $700 per year in 2019. But the cost of flood insurance can depend on several factors, including flood zone, age and structure of the house, etc.

Where can I buy flood insurance?

To find insurers that sell National Flood Insurance Program (NFIP) policies, you can use the Provider Finder on the Federal Emergency Management Agency website. Most major insurers offer NFIP policies that can be purchased from them. You can also take out private flood insurance with several insurers. Experts recommend contacting an insurance professional.