Floods can cause extensive damage, and many homeowners discover too late that their standard insurance does not cover flood-related losses. Flood insurance must be purchased separately, typically through the National Flood Insurance Program (NFIP). In North Carolina, flooding is a frequent and costly hazard, with hurricanes and floods causing about $310 million in annual property damage.
Importance of Adequate Flood Insurance Coverage
As of 2024, the NFIP provides up to $250,000 in coverage for residential structures and $100,000 for personal property. However, these limits may not be sufficient for all homeowners, particularly those with higher-value homes or valuable possessions. It’s important to regularly assess your coverage and increase it if your property’s value has risen or if you own high-end items that exceed these limits.
Impact of Hurricanes Florence and Matthew
Eastern North Carolina has been particularly hard-hit by hurricanes, with Florence in 2018 and Matthew in 2016 both causing catastrophic flooding. Hurricane Florence brought unprecedented rainfall, resulting in widespread flooding across the region, particularly in areas like New Bern and Wilmington. The storm caused over $17 billion in damage statewide, with many communities suffering severe infrastructure losses. Hurricane Matthew, which struck two years earlier, also caused extensive flooding, leading to significant damage to homes, businesses, and agricultural lands. The combined impact of these storms has made flood insurance an essential consideration for homeowners in the region.
Immediate Actions After a Flood
Safety should be your first priority. Avoid disaster areas and do not enter buildings until they are deemed safe by local officials. Document the damage thoroughly, taking extensive photographs of both the building and its contents before discarding any items. This documentation is crucial for filing a successful insurance claim.
Filing a Flood Insurance Claim
When filing a claim, prompt action is essential. There is typically a 60 day deadline on submitting a proof of loss and all documentation for your claim. Immediately file your claim and get a claim number to ensure you are in the system. If your property has experienced both wind and flood damage, you may need to file two separate claims—one under your standard homeowner’s insurance and another under your flood insurance policy.
Private Flood Insurance: An Alternative to NFIP
While the NFIP (National Flood Insurance Program) offers standardized coverage, private flood insurance is an option that may offer higher coverage limits and more flexible policies. For example, in North Carolina, private insurers can provide coverage that exceeds the NFIP’s $250,000/$100,000 limits, making it an attractive option for homeowners with more valuable properties. Additionally, private policies often include options to cover additional items not covered by the NFIP, such as pools or decks, and may have shorter waiting periods for policy activation.
Understanding Waiting Periods
A critical aspect of flood insurance is the waiting period before the coverage takes effect. Typically, NFIP policies require a 30-day waiting period from the date of purchase before they become active. This rule prevents homeowners from purchasing insurance at the last minute when a flood is imminent. However, certain exceptions may apply, such as when insurance is purchased in conjunction with a new mortgage (FloodSmart) (The Insurance Universe) (Insurify).
Coastal North Carolina Flooding Statistics
Coastal areas in North Carolina are particularly vulnerable to flooding, with higher-than-average flood insurance costs reflecting the frequent and severe nature of these events. For instance, the average NFIP flood insurance claim in North Carolina is $24,600, but the cost of rebuilding or repairing flood-damaged homes often far exceeds this amount.
Navigating Complexities
Navigating the complexities of flood insurance claims can be daunting, especially after experiencing significant property damage. In conclusion, understanding your flood risk, securing adequate insurance coverage, and knowing how to file a claim effectively are crucial steps in protecting your home and finances from flood damage. If the standard NFIP coverage limits are insufficient, exploring private flood insurance options and if you have claim, seeking the assistance of a public adjuster like My Insurance Adjuster LLC may provide the additional protection and support you need during the recovery process.
Rick Carter is the author of “How to Settle Your Claim and Get the Money You Deserve”
He is a N.C. Public Adjuster with over 25 years experience. His company “My Insurance Adjuster” is actively assisting property owners with claim advocacy and management. For information or to have your claim reviewed contact: www.MyInsuranceAdjuster.com