Recently, several homes near a Swift Creek tributary in Cary’s Scottish Hills neighborhood suffered flood damage after heavy rains. In previous years, residents in the Wellington Park community experienced worse flooding problems than in the past. In both cases, citizens blamed new area developments for creating the problem. This is one reason why flood insurance is so important in the growing city of Cary, NC. Flood insurance takes 30 days to go into effect, so do not wait until heavy rains are imminent to buy a policy. An independent insurance agent in Cary can help you secure a suitable, yet affordable, flood insurance policy. Find an insurance agent near you to learn more.
What Is Flood Insurance?
Because the associated costs are so high, conventional insurance policies like homeowners insurance, renters insurance, and business insurance do not cover flood damage caused by rising waters. This became a problem since massive flood damage has the potential to wipe out entire neighborhoods and destroy people’s finances. Fortunately, in 1969 the federal government stepped in and created the National Flood Insurance Program (NFIP). This program provides affordable flood insurance policies to people in need.
How Much Does Flood Insurance Cost in Cary, NC?
Rates for coverage are standard across the United States and are based on:
- Whether your property is located in a high-risk, medium-risk, or low-risk area
- How much structural coverage you are purchasing
- How much contents coverage you are purchasing
- The amount of your deductible
To get a general idea of how much a policy costs, the average price paid for flood insurance in the United States is about $700 a year. Know that filing a flood insurance claim will not cause your rates to increase. Also, if your property is located in a high-risk flood zone, you cannot be turned down for coverage.
Average Rainfall and Flooding in Cary, NC
The city of Cary sees more rainfall than most of the United States.
- US average annual rainfall: 38.61 inches
- Cary average annual rainfall: 43.29 inches
Floods can occur with very little warning, but in Cary, this damage is more likely to occur in the wake of a tropical storm or hurricane. When heavy rains fall, it can cause sewer lines to back up. Bodies of water like Bond Lake and waterways like Crabtree Creek can easily overflow their banks, leading to area flooding.
Do I Need Flood Insurance in Cary?
If your property is located in a Special Flood Hazard Area, your mortgage lender will require you to have a flood insurance policy in place. If you live in a low- or moderate-risk area, your lender may or may not require this coverage. Once your property is paid in full, the coverage will be optional. If you own a house or business that is not located in one of Cary’s flood zones, that does not necessarily mean you have no risk of flood damage. In fact, one in five flood insurance claims filed are for properties that are located outside designated flood zones.
What Does Flood Insurance Cover?
Flood insurance has two parts: structural coverage and contents coverage. Naturally, if you are renting your home, you will only need to purchase contents coverage. If your house has a basement and you are not worried about floodwaters rising up to your main living floors, you may want to purchase structural coverage only.
- Structural coverage flood insurance: Homeowners can purchase a maximum of $250,000 in structural coverage, while businesses have a limit of $500,000. This insurance covers damage to your property’s foundation and structural equipment, such as circuit breakers, water heaters, and furnaces.
- Contents coverage flood insurance: Homeowners can purchase a maximum of $100,000 in contents coverage, while businesses have a limit of $500,000. This insurance covers personal belongings kept on main floors, as well as appliances, such as your washing machine, dryer, and freezer, even if they are kept in your basement.
Talk to your local independent insurance agent for help determining how much coverage is right for you.
What Is Not Covered by Flood Insurance?
So you have a finished basement that was destroyed in a flood. Think your flood insurance will cover the sectional sofa and flat-screen TV you lost? Think again. The only basement-kept personal property covered by flood insurance is appliances like your furnace, water heater, and washer and dryer. Flood insurance also will not cover:
- Mold and mildew remediation
- Damage caused by earth movement
- Property kept outside your home
- Currency and important papers
- Claims filed within 30 days of your policy purchase
Talk to your local independent insurance agent for more information about the limitations of a flood insurance policy.
Why Work with an Independent Insurance Agent in Cary?
Independent agents in Cary can provide assistance when you are shopping for flood insurance. They can also provide trustworthy answers to your insurance-related questions.
Contact an independent insurance agent in Cary to learn more about flood insurance and other insurance products that may be beneficial to you.
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