When Is Flood Insurance Required in North Carolina?
According to the Federal Emergency Management Agency, flooding is the number one natural disaster in the United States. Conventional homeowners insurance policies do not cover damages caused by flooding; therefore, it is up to North Carolina homeowners to purchase a flood insurance policy. Flood insurance is only mandatory for homes that are in high-risk flood zone and that are purchased with a federally insured mortgage.
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Flood Risks
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To quantify flood risks, FEMA conducts in-depth studies analyzing topography, hydrology, rainfall rates and historical flooding data. Through this analysis, FEMA is able to classify land into three risk zones: high-risk, low-moderate-risk and undetermined risk. In a high-risk zone, there is at least a 1 percent chance in a given year that the land will flood; in a low-moderate-risk zone, there is less than a 1 percent chance; and in the undetermined risk zone, the risk is unknown. FEMA communicates the risk zones on special maps, called Flood Insurance Rate Maps.
Flood Damages in North Carolina
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Floods are a destructive natural hazard in North Carolina. Since 1978, federal flood insurance policy holders in North Carolina have received more than $751.6 million in claim payments. The communities across North Carolina are active participants in the National Flood Insurance Program. The NFIP is based on a mutual agreement between the federal government and communities. Communities that participate in the NFIP agree to adopt and enforce sound floodplain management strategies to mitigate flood risks. In return, the community receives flood hazard analysis and maps, as well as the option to purchase federally backed flood insurance.
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Regulations
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Federal flood insurance is required for all buildings in mapped high-risk zones if they are financed by federally backed loans or mortgages. Owners can purchase flood insurance for residential and commercial properties that are located in communities that participate in the NFIP, even if these properties are not in the high-risk zone. In fact, approximately 25 percent of all flood damage occurs in low-risk zones.
Initiatives
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In 1999, Hurricane Floyd devastated thousands of square miles of eastern North Carolina, leaving thousands homeless. In 2000, FEMA, in cooperation with the state of North Carolina, created the North Carolina Floodplain Mapping Program to modernize flood maps. Now, new Digital Flood Insurance Rate Maps, DFIRMs, are readily available for homeowners to view from home, on their personal computers. Visit North Carolina's Floodplain Mapping Information System website. At this site you can view and download the state's digital flood hazard data. From the map you can determine your flood risk zone, then you can visit the floodsmart website where you can estimate the total cost of a flood insurance policy.
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