How does flood insurance work?
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.
Most property & casualty insurance agents offer coverage through this program. If rated properly, the price of this coverage should be the same from company to company with only slight variations due to policy fees they may have added.
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!
