Does my Basic Home Insurance Policy in North Carolina Cover Flood Damage?

Many towns in the Avery and Watauga counties in North Carolina are still reeling from the impact of the floods that took place just a month back. This bout of flooding comes in the wake of the prediction, as was published in Forbes, that the United States will see more severe weather in 2013. So it is natural that homeowners across North Carolina would be concerned not only about the stability of their homes in the face of severe flooding but also wondering, “Does my basic home insurance policy cover flood damage?”

What Does Basic Home Insurance Policy in North Carolina Usually Cover?

According to A Consumer’s Guide to Homeowners Insurance published by the North Carolina Department of Insurance, a basic homeowners insurance policy in North Carolina is a multi-peril policy that packs in many types of coverage in one policy. Unfortunately, a basic homeowner’s insurance policy in North Carolina usually does not include coverage for flooding damage. Nor does it protect the homeowner from damages caused by other natural disasters like earthquakes, mudflows, mudslides, and landslides.

In this context, it is worth mentioning that the Department of Insurance in North Carolina had approved a 7 percent average increase in home insurance rates all over the state earlier this year. Charlotte homeowners may now see the prices of their basic home insurance policies rise by more than 8 percent while those in cities like Durham and Raleigh may have to shell out close to 3 percent more for their home insurance policies. This increase may put additional strain on the purses of some homeowners in these cities. They will probably need to re-organize their finances should they also want to buy additional flood insurance coverage.

Homeowners in North Carolina now have another issue to mull over: Do I need flood coverage for my home?

Who Should Buy Flood Insurance Coverage in North Carolina?

According to The New York Times, North Carolina ranks third in the country in terms of the risk of flooding in the coastal areas due to rising seas. So, it goes without saying that beachfront home owners in Brunswick, New Hanover, Onslow, Pender, Carteret, Hyde, Dare, and Currituck counties should definitely invest in additional flood insurance coverage.

But it is not only rising seas that pose the risk of flooding. Torrential rains, tropical storms, and river floods too cause widespread damage in various areas of North Carolina.

There are some regions in the state that are particularly prone to flooding. For instance, Charlotte has witnessed 50 major floods in the last century and tropical storms like Jerry, Danny, and Fay has wreaked havoc on real estate properties here. On the other hand, the impact of Hurricane Irene was felt as far inland as in cities like Raleigh and Rocky Mount. Again, when rain pelted the north-western part of the state just a month back, flood alerts were also issued in the western part of the state and in major cities like Asheville. So it is evident that homeowners in these vulnerable areas too should buy flood insurance policies.

Thus it is evident that homeowners all over North Carolina should carefully evaluate the risk of flooding where they live and decide if they need additional coverage for their homes. After all, the biggest investment of their lives is at stake.