Homeowners Insurance Doesn't Cover Flood!
Flood insurance is something most people should have. Most if not all of the homeowners insurance policies purchased in South Carolina and North Carolina DO NOT cover damage caused by Flood. It is important to understand the difference between water damage and flood damage. Water damage can come from a burst pipe, other pipe damage, rain coming in from roof damage, etc. All of these are usually covered by your homeowners policy.
However, Flood damage comes from rising water - Water coming from the ground up. This could be due to heavy rain, an over-flow of a body of water, or tidal water. FEMA Flood Insurance offers a separate policy to cover this kind of damage.
The Zones with Flood Insurance
The National Flood Insurance Program rates areas based on the likelihood that a particular land mass would flood. They are separated into "flood zones" and given certain letters to indicate what zone is assigned to that area. X, A, AE, or VE are some that you may have heard of. Most property falls into the "X" flood zone. "X" is considered a preferred zone because it is less likely to flood. Coverage can be purchased very easily in this zone without the need for an elevation certificate.
Unfortunately, 40% of all flood claims come from "X" zones. If your property is located in one of the other flood zones, an elevation certificate will be required in order to quote and bind coverage. Elevation certificates are done on your specific property by a surveyor.
If you have further questions we will be happy to guide you through the process by determining what flood zone your property is in, giving advice on coverage, and completing an accurate quote. Please be aware that there is a 30-day waiting period on the initial purchase of federal flood insurance. So remember, buy it well before a Hurricane is headed your way!
Frequently asked questions about Flood Insurance
You'll find our growing list of our most popular questions about South Caroilna flood insurance.
Why doesn’t homeowners insurance cover flood damage?
To my knowledge, no homeowners policy in SC or NC covers flood damage. The main reason is that the Federal Government provides a policy through the National Flood Insurance Program. This policy is subsidized by the taxpayers and therefore less expensive than an equal policy that any insurance company would offer. You can purchase a flood policy through a local agent. It should be the same premium anywhere you go if equal coverage is quoted and the quote is prepared correctly.
For more information, see our page on National Flood Insurance
For flood insurance, what is the critera for X and Preferred X? The cost diffence is substantial.
The flood zone designated as "X" is actually the only preferred flood zone that I am aware of. If your property is located in an "X" zone, it is considered at lower risk for flooding and therefore the premium is much cheaper.
If in an "X" zone, you can purchase flood insurance without any further documentation. Your agent should be able to do a flood zone determination if you are not sure what zone your property is in. If it turns out that it is in a zone other than "X" such as "A", "AE", or "VE", you will need a surveyor to complete an elevation certificate in order to get an accurate quote on flood insurance.
3 things to remember about Flood Insurance
- Flood insurance is offered through the National Flood Insurance Program and should be the same price through any agent, provided it is rated correctly. Always deal with an agent who writes a lot of flood insurance. They will know the process and will be able to advise you correctly.
- 35 to 40% of all flood claims come from "X" flood zones! Just because someone is in an "X" zone does not mean they do not need flood insurance.
- Flood is not covered by homeowners insurance. So, plan accordingly.