Torrential downpours can cause sewage lines to back up and waterways to overflow. In Greensboro, flash flooding is a significant problem, particularly for people who live in areas like Latham Park and Wafco Mills, where flooding is more common. Floods can wipe out large areas of land. Don’t let them wipe out your finances too. Make sure you cover your property with a flood insurance policy. Flood insurance takes 30 days to go into effect, so do not wait until heavy rains are imminent to buy your coverage. An independent insurance agent in Greensboro can help you secure a suitable, yet affordable, flood insurance policy.
What Is Flood Insurance?
Because the associated costs are so high, in the 1950s and ‘60s, insurance companies stopped including flood damage in standard policies like home insurance, renters insurance, and business insurance. This became a problem since massive flood damage had the potential to wipe out entire neighborhoods. A flood could also destroy people’s finances, and there was nothing they could do about it. Fortunately, the federal government stepped in and passed the National Flood Insurance Act of 1968, which created the National Flood Insurance Program (NFIP). This program makes it possible for homeowners and businesses to protect their assets with federally backed flood insurance policies.
How Much Does Flood Insurance Cost in Greensboro, NC?
Rates for flood insurance coverage are standard across the United States. They 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 basic idea of how much a flood insurance policy costs, the amount that US residents pay for this coverage is about $700 a year. If your property is not located in a high- or medium-risk zone, you may qualify for a Preferred Risk policy at significantly lower rates. Be aware 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 Greensboro
The city of Greensboro receives more rainfall than most of the United States.
- US average annual rainfall: 38.61 inches
- Greensboro average annual rainfall: 42.36 inches
Floods can occur with very little warning, but in Greensboro, this damage is more likely in the wake of a tropical storm or hurricane. Rainfalls in excess of two inches per hour can cause sewer lines to back up and bodies of water like Lake Brandt and waterways like North Buffalo Creek to overflow their banks, leading to area flooding.
Do I Need Flood Insurance in Greensboro, NC?
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. There are several areas in Greensboro that are designated as flood zones. If your home or business is located outside these high-risk locations, that does not mean you have no need for a flood insurance policy. In fact, between and 20% and 25% of all flood insurance claims filed each year are for properties that are located outside designated flood zones. A local independent insurance agent can help you review flood zone maps to determine your level of risk.
What Does Flood Insurance Cover?
Flood insurance is made up of two parts: structural coverage and contents coverage. Naturally, if you are renting your home or business space, you will only need to purchase contents coverage, since your landlord will be responsible for covering the building itself.
- 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 as well as structural equipment such as electrical and plumbing systems, 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 above-ground floors as well as appliances normally kept in a basement (e.g., washing machines, dryers, and freezers).
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?
If your house includes a finished basement and it floods, don’t expect to receive any compensation for the furniture, electronics, and personal property you kept in this basement space. The only basement-kept property that a flood insurance policy will cover is appliances, like your furnace, water heater, washing machine, and dryer, that are normally found in basements. Additionally, flood insurance will not cover:
- Mold and mildew remediation
- Damage caused by earth movement like mudslides
- Personal property kept outside your home
- Currency and important papers
- Damage that occurred within 30 days of your policy purchase
Talk to a local independent insurance agent for more information about the limitations of a flood insurance policy.
Why Work with an Independent Insurance Agent in Greensboro, NC?
Independent agents in Greensboro can provide you with 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 Greensboro to learn more about flood insurance as well as any other insurance products that may be beneficial to you.
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