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When heavy rains or storm surges strike, the resulting water damage can leave properties and finances in disarray. Flooding can be devastating to homeowners and business owners. That’s why there are over 81,000 flood insurance policies in NC in effect, covering billions.
Knowing what flood insurance does and does not cover is crucial for property owners. By understanding flood insurance coverage, you can safeguard your assets and protect yourself from the high costs of flood-related damages.
Below, let’s explore how flood insurance in NC works, highlight common misconceptions, and explain where you, as policyholders, can look for help if your flood claims are delayed or denied. For property owners who need legal guidance, our North Carolina flood insurance lawyers at The Morgan Law Group stand ready to help policyholders navigate their NC flood insurance claims.
Importance of Flood Insurance in NC
Flood insurance covers damages caused by rising water that affects two or more acres of normally dry land or two or more properties, one of which is yours. A standard homeowners insurance typically excludes flood damage. As noted by the North Carolina Department of Insurance and the Federal Emergency Management Agency (FEMA), a separate flood insurance policy – often through the National Flood Insurance Program (NFIP) – is usually necessary to provide this type of protection.
Because so many locations in the state are prone to hurricanes, flash floods, and other water-related disasters, NC flood insurance can be a crucial part of any comprehensive property protection plan.
If you own a business, business flood insurance coverage can help replace your damaged inventory or address structural repairs to commercial buildings. For homeowners, flood insurance coverage might help restore living areas, replace floors, and address other forms of water damage.
What Does Flood Insurance Cover?
So, precisely, what does flood insurance cover?
The NFIP and most private flood insurance in NC generally provide two main forms of protection:
- Building Property Coverage: This part of your policy typically covers the building and its foundation, electrical and plumbing systems, HVAC equipment (like air conditioners and furnaces), water heaters, built-in appliances, permanently installed carpeting, paneling, wallboard, bookcases, and cabinets.
- Personal Property Coverage: Also referred to as “contents coverage,” this portion of your flood insurance covers belongings like furniture, electronics, clothing, portable appliances, and certain valuables. Depending on your policy, limits and deductibles may apply to specific categories or individual items.
Understanding your specific flood insurance coverage is essential, so talk with your insurance provider and carefully review your policy documents to confirm the extent of your protection.
What Does Flood Insurance Not Cover?
Although flood insurance in NC covers many types of damage directly caused by flooding, certain losses may be excluded. Knowing what flood insurance does not cover helps set realistic expectations when you file a claim.
Typical exclusions include:
- Temporary Housing & Additional Living Expenses: NFIP policies usually do not cover costs like hotel bills or food expenses if you are displaced. Some private policies might, so read your policy carefully.
- Landscaping & Outdoor Property: Flood insurance generally excludes coverage for landscaping, decks, patios, fences, septic systems, or swimming pools.
- Basement Improvements & Property: Although “basement” definitions can vary, flood insurance coverage for below-ground areas is typically limited to essential equipment like electrical panels or furnaces. Personal belongings kept in basements are often not covered.
- Financial Losses: Lost revenue for businesses caused by flood closures or interruptions usually aren’t covered by a standard NFIP policy, although certain private flood coverage or business interruption insurance might offer additional protection.
Why You Need NC Flood Insurance
Even areas that don’t appear to be high-risk can flood due to heavy rains, hurricanes, or overflowing rivers. Some residents mistakenly believe that they’re safe without additional flood insurance in NC.
However, one in four flood claims is filed outside of a high-risk area. By carrying a stand-alone flood insurance policy, as property owners, you can mitigate or entirely avoid the substantial repair bills that follow in the wake of water damage.
Additionally, mortgage lenders often require flood insurance coverage if the property sits in a designated flood zone. Even if your lender doesn’t require it, purchasing flood insurance can be a wise decision given North Carolina’s susceptibility to storms and rising waters.
Filing a Flood Insurance Claim in North Carolina
When filing a flood insurance claim in NC:
- Contact your insurance carrier immediately after the disaster.
- Document everything: take photos or videos of your property before you remove any damaged materials or begin repairs.
- Keep receipts, estimates, and other paperwork related to cleanup and replacement costs. Present these to your insurer as evidence of your losses.
Disagreements often center on what flood insurance covers versus what property owners believe should be included. Disputes also arise regarding repair cost calculations, the classification of water damage (is it “flooding” or “wind-driven rain?”), or whether a property’s basement or crawl space damage qualifies for coverage.
When facing any of these issues, enlisting a North Carolina flood insurance lawyer can help clarify policy language and help you pursue the full compensation you’re entitled to under your flood insurance coverage.
Consulting Flood Insurance Lawyers in North Carolina
Flooding is an unfortunate reality for many residents in North Carolina, and the question – what your flood insurance covers and not – should be at the forefront of your mind, so you can prepare accordingly or explore supplemental policies that address the gaps.
If your flood insurance covers less than you expected, or if you’re struggling with a claim denial – legal guidance can make all the difference. For over 25 years, The Morgan Law Group has helped homeowners and business owners across the United States stand up to insurance companies and recover rightful benefits.
Prepare now, stay informed, and rest assured that if you ever need assistance navigating a flood insurance coverage dispute, we’re ready to advocate on your behalf. Call us today at (984) 273-8547 or complete our contact form for a free case evaluation.
