Residents of Fayetteville probably thought they’d seen the worst after Hurricane Matthew brought with it a 500-year flood. Unfortunately, Hurricane Florence recently rolled through, causing even more flooding and destruction than its predecessor. Fortunately, many home and business owners in this city were protected by flood insurance. Flood insurance takes 30 days to go into effect, so do not wait to purchase a policy until a hurricane is on track to make landfall. An independent insurance agent in Fayetteville can help you protect your property with suitable, yet affordable, flood insurance coverage.
What Is Flood Insurance?
Homeowners insurance, renters insurance, and business insurance go a long way towards covering your assets and protecting your finances. However, these policies do not cover flood damage. Fortunately, in 1968 the US federal government created the National Flood Insurance Program (NFIP) to protect property owners from losing everything due to floods. Individuals and business owners can purchase affordable flood insurance policies through this federally backed program.
How Much Does Flood Insurance Cost in Fayetteville, NC?
Rates for flood insurance coverage are standard across the United States. Filing a claim will not cause your rates to increase, and you cannot be turned down for coverage if your property is located in a high-risk flood zone. Flood insurance costs are based on:
- Whether your property is located in a high-risk, medium-risk, or low-risk area: Risks are determined according to FEMA-drawn flood maps. Those in low-risk areas can get Preferred Risk policies at much lower rates.
- How much coverage you are purchasing: You can decide how much structural and contents coverage you wish to include in your policy, up to a designated limit.
- The amount of your deductible: The lower your deductible, the higher your cost.
Talk to an independent insurance agent to learn how much a flood insurance policy for your Fayetteville home or business will cost you.
Average Rainfall and Flooding in Fayetteville
The city of Fayetteville sees more rainfall than most of the country.
- US average annual rainfall: 38.61 inches
- Fayetteville average annual rainfall: 45.34 inches
When tropical storms and hurricanes make landfall on the North Carolina coast, they often bring extremely heavy rainfall. This can saturate the ground and cause backups in drainage systems. Also, local bodies of water like McFayden Lake and waterways like the Cape Fear River can easily overflow their banks, leading to area flooding.
Do I Need Flood Insurance in Fayetteville, NC?
Mortgage companies require property owners in high-risk flood zones to carry flood insurance. Depending on your lender, this coverage may or may not be required if you live in a medium risk area. Once you own your property outright, flood insurance is optional. This is not to say you should forego coverage if it is not required. Even homes and businesses in low-risk areas can experience expensive flood damage. Believe it or not, about 20% of all flood insurance claims filed are for properties in low-risk areas.
Although you may think that FEMA will help you pay to rebuild following a major storm, FEMA assistance only comes if the flood area is declared a federal disaster, and the help comes only in the form of guaranteed low-interest loans that must be paid back. Flood insurance can prove to be way more cost-effective.
What Does Flood Insurance Cover?
Flood insurance is made up of two parts: structural coverage and contents coverage. Depending on your circumstances, you can opt to purchase just one or both types of coverage.
- Structural coverage: This covers damage to your property’s foundation and structural equipment such as electrical systems, plumbing, water heaters, furnaces, built-in appliances, and permanently installed carpeting over unfinished floors. Homeowners can purchase a maximum of $250,000 in structural coverage, while businesses may purchase up to $500,000.
- Contents coverage: This covers personal belongings kept on main living floors such as furniture, clothing, electronics, portable appliances, and carpeting. In basements, it covers only appliances that are normally kept in that part of the house such as your washing machine, dryer, and freezer. Homeowners can purchase a maximum of $100,000 in contents coverage, while businesses have a limit of $500,000.
Talk to your local independent insurance agent for help determining how much of each type of coverage is right for you.
What Is Not Covered by Flood Insurance?
Homeowners with finished basements are often surprised to learn that, other than appliances that are normally kept in a basement, personal property stored in this area of the home is not covered by flood insurance. Additionally, flood insurance will not cover:
- Remediation of mold and mildew
- Structural damage caused by earth movement like mudslides, even if it is the direct result of a flood
- Personal property that is kept outside, such a swing sets and lawn furniture
- Currency and documents
- Claims for damage that occurred within 30 days of your policy purchase
Talk to your local independent insurance agent to learn more about the limitations of a flood insurance policy.
Why Work with an Independent Agent in Fayetteville, NC?
You can ask an independent agent in Fayetteville for assistance when you are shopping for flood insurance. These insurance professionals live and work in your community, so they understand the risks you face when it comes to floods and other natural disasters.
Contact an insurance agent in Fayetteville to learn more about flood insurance as well as any other insurance products that may be of benefit to you.
©2020, Consumer Agent Portal, LLC. All rights reserved.