“I do not need flood insurance because I am not in a floodplain.” I’ve heard this my whole career.
Let me start by removing the myth about floodplains, because every property is located in one. The difference is the likelihood of a flood occurring. Flood occurrences have resulted in flood maps being redrawn periodically to include new flood-prone areas resulting from recent natural disasters. I think the weather events over the last several years should have anyone who lives near even the smallest water source considering flood insurance.
The U.S. has now seen 100-year and 500-year storms happen in places none of us ever expected them. These storms have shown that ditches can become creeks, creeks become streams, streams become rivers and rivers become lakes, and each storm has changed the landscape forever in those affected areas.
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Are You Protected?
Flood zones play a big part in determining a flood insurance premium. The more likely to flood, the higher the premium.
Under the National Flood Insurance Program, a flood is defined as a general and temporary condition where 2 or more acres of normally dry land or two or more properties (at least one of which is the policyholder’s) are inundated by:
- Overflow of inland or tidal waters
- Unusual and rapid accumulation or runoff of surface waters
- Mudflows (mudslides)
- Collapse or subsidence of land
Some exclusions to this definition are applicable to the boat houses, boat docks and piers that many North Carolinians have at their waterfront properties. First, no coverage is provided for a building, and personal property in it, located entirely in, on or over water or seaward of mean high tide if it was constructed or substantially improved after Sept. 30, 1982. The second exclusion is for open structures, including buildings used as boathouses or any structures or buildings into which boats are floated, and personal property located therein, on or over water.
Even with the exclusions, a flood policy does provide a greater opportunity for coverage resulting from flooding that seems to be occurring more frequently. As there is a 30-day waiting period before these policies go into effect, you might need to apply for coverage sooner rather than later.
For more information on flood insurance coverages and exclusions or for a quote, reach out to your local Farm Bureau agent. To learn more, visit ncfbins.com.
