Do I Need Flood Insurance in North Carolina? How Much Does It Cost?
North Carolina homeowners pay an average of $836 per year for flood insurance from the National Flood Insurance Program (NFIP).
North Carolina does not require homeowners to buy flood insurance. But your mortgage lender may require you to have flood insurance if your home is in an area with a high risk of flooding. Even people who don't live in high-risk areas may want to consider flood insurance because standard homeowners insurance doesn’t pay for damages caused by flooding.
Homeowners in North Carolina can buy flood insurance through the National Flood Insurance Program (NFIP), which is a federally backed program, or a private insurance company.
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How much does North Carolina flood insurance cost?
The average cost of flood insurance in North Carolina is $836 per year for an NFIP policy with around $287,000 of coverage. Annual flood insurance rates in North Carolina range from $200 to nearly $4,000, depending on where you live.
Cost of NFIP flood insurance in NC by city
City | Avg annual cost |
|---|---|
| Aberdeen | $727 |
| Ahoskie | $1,318 |
| Alamance | $371 |
| Albemarle | $988 |
| Alliance | $934 |
North Carolina residents who buy a policy from the National Flood Insurance Program (NFIP) will find that the cost of flood insurance depends heavily on whether they live in a high-risk flood zone. The elevation of the land your home sits on and the height of the lowest floor of your home also significantly impact your rates.
Do I need flood insurance in North Carolina?
North Carolina homeowners aren't required by the state to buy flood insurance. But your mortgage company may require you to buy coverage if your home is in an area with a high risk of flooding.
Homes that are in a Federal Emergency Management Agency (FEMA) flood zone beginning with "A" or "V" need flood insurance to get a mortgage. These homes are typically located at a low elevation above sea level, like the Outer Banks, or near a river, like the Catawba. Their proximity to water means that they have a 1% or greater chance of flooding each year.
Even if your home is far from the coast or another body of water, North Carolina homeowners should consider buying flood insurance.
Flood damage is not covered by standard homeowners insurance, and even a few inches of flood water can easily cause tens of thousands of dollars in damage.
North Carolina typically experiences a number of flooding events each year, including hurricanes and seasonal heavy rains. Floodwaters can also come from storm drains or other sources, causing flooding in places that might not normally be at risk.
How do I find out which flood zone my house is in?
North Carolina homeowners can easily determine which flood zone they are in by using the North Carolina Flood Risk Information System (FRIS) online mapping tool.
The tool shows which areas are at high risk of flooding, so you can get an idea of how likely it is that your home might flood. The tool even includes a calculator that uses your home's square footage, elevation and building value to give an estimate of how much you might pay for flood insurance.
Keep in mind that the information provided by the tool is an estimate, not an exact quote. You'll have to contact an insurance company or a local North Carolina flood insurance agent to determine the exact rate you'll pay for flood insurance.
How do I get flood insurance in North Carolina?
You should start by getting a quote from your home insurance company if it also sells flood insurance. If your home is damaged in a major storm, it will make your life a lot easier to have a single point of contact for your flood and homeowners insurance claim.
Homeowners can get NFIP flood insurance from most insurance companies and agents in North Carolina.
The NFIP is a federal program, so a policy costs the same regardless of who you buy it from.
Largest NFIP flood insurance companies in NC
Company | Market share % |
|---|---|
| North Carolina Farm Bureau | 16% |
| Selective | 14% |
| Assurant | 13% |
| The Hartford | 13% |
| Allstate | 12% |
After getting an NFIP quote, you should compare quotes from private flood insurance companies to make sure you get the best price.
Largest private flood insurance companies in North Carolina
Company | Market share % |
|---|---|
| AIG | 14% |
| AXA SA | 14% |
| Liberty Mutual | 10% |
| Zurich | 10% |
| Assurant | 9% |
Some companies offer both NFIP and private flood insurance, like Allstate, Wright National and The Hartford. This makes it easy to compare quotes and find the best policy for you.
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Which is better for North Carolina homeowners: private or public flood insurance?
The NFIP has typically been the most affordable and accessible option for flood insurance. But over the last several years, the private flood insurance industry has seen improvement in both rates and availability.
North Carolina residents may want to look into private flood insurance, especially if they can't get the right level of coverage or are quoted a high price for flood insurance from the NFIP.
There are a few potential drawbacks of private flood insurance.
- If your mortgage company requires you to buy flood insurance, it may insist that a private policy has the same level of coverage as an NFIP-backed policy.
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Many private flood insurance companies are new and untested, so there is a greater chance that your insurance company may not be able to pay your claim in the case of a major disaster.
Insurance companies are at the most risk of being unable to pay out claims when a large number of people make expensive claims at the same time. This can happen after a major hurricane or widespread flood, like Hurricane Florence in 2018. -
Not everyone can buy private flood insurance. If your home is located in a high-risk area, like the Outer Banks, some private flood insurance companies may charge you very high prices. Some may not offer you flood coverage at all.
If you're denied coverage, you can check with other companies to find a better price, but the NFIP may be your only option.
What does flood insurance cover in North Carolina?
NFIP flood insurance offers a maximum of $250,000 of coverage for your home's structure and $100,000 of coverage for your personal belongings.
The $250,000 structure limit, also known as your dwelling coverage, covers the cost to rebuild your home if it's damaged in a flood. This number is different from your home's resale value, which is usually higher because it includes the value of the land it is built on.
NFIP dwelling coverage protects:
- Your home's walls, windows, doors and roof
- Standard home systems like a furnace, HVAC and electrical wiring
- Built-in appliances like a refrigerator or stove
- Permanent flooring like hardwood or carpeting
- Detached garages (up to 10% of your coverage limit)
- Debris removal
NFIP personal property coverage protects:
- Furniture and rugs
- Electronics
- Portable appliances, like refrigerators and microwaves
- Clothing
- Window treatments
- Frozen (but not refrigerated) food
- Valuables (up to $2,500)
Beyond the dollar-limit maximum, there are some limitations as to what is covered under NFIP flood insurance.
Some parts of your property are not covered, usually because they are prone to flood damage, like landscaping or an outdoor pool.
Not covered by NFIP insurance
- Trees and plants
- Outdoor paths
- Pools and hot tubs
- Decks
- Fences
- Precious metals
- Cash and stock certificates
NFIP flood insurance also does not cover additional living expenses or loss of income.
If you want or need coverage for anything not covered by NFIP insurance, or you need more than the coverage limits NFIP provides, consider buying a policy from a private flood insurance company in North Carolina.
Private flood insurance companies often have a wider range of coverages available and may be more likely to meet your needs.
Frequently asked questions
How much is flood insurance in NC?
The average cost of flood insurance in North Carolina is $836 per year for $287,282 of coverage from the NFIP. But your flood insurance may cost more or less depending on where you live, how your home was built and the elevation of your property.
Is flood insurance required in North Carolina?
According to state law, residents of North Carolina aren't required to buy flood insurance. But if your home is located in an area determined by FEMA to be at high risk of flooding, you may have to buy coverage to be eligible for a mortgage backed by the federal government.
Where can I buy flood insurance in North Carolina?
Homeowners in North Carolina can buy flood insurance through the National Flood Insurance Program (NFIP), which is a federally-backed program, or a private insurance company. Some companies — including Allstate, Wright National and The Hartford — sell both NFIP and private flood insurance, making it easy to compare rates and decide which policy is better for you.
Methodology
To find the average cost of flood insurance in North Carolina, ValuePenguin used data published by the National Flood Insurance Program (NFIP).
Market share information for the largest flood insurance companies in North Carolina was provided by S&P Global, a financial data resource for the insurance industry.