North Carolina to roll out private flood insurance


RALEIGH, N.C. (WNCN) – The two days of drenching rains last week provided North Carolina residents with a reminder that floods don’t just happen when a hurricane hits.

In an effort to provide flood insurance to more people, the state is about to be the first in the nation to roll out its own private flood insurance.

The state claims it will be better than the current federal flood insurance that is offered nationally.

When the floods come, the water goes where it wants to go and if you’re in a flood zone and don’t have flood insurance – you’re out of luck.

“Homeowners policies, in general, do not cover flood damage,” said North Carolina Insurance Commissioner Mike Causey.

When Hurricane Florence hit in 2018, Causey said only 135,000 people out of the state’s 10-million person population had flood insurance.

The state is broken down into flood zones on special maps.

Currently, the only flood insurance is provided by the federal government.

However, that is about to change because the state will soon unveil its own private flood insurance.

“We’ll be one of the first in the United States to have this type of coverage,” said Causey.

The state’s private flood insurance will offer:

  • More comprehensive coverage than federal flood insurance
  • Have Higher Limits than federal flood insurance
  • Require no waiting period

If you want federal flood insurance, you must wait a month after you apply before it goes into effect.

As for the cost of North Carolina private flood insurance, Causey believes it will be a better deal than the federal version.

“I’ve not seen the premiums yet, but it’s my hope that the premiums per $100,000 would actually be lower than what’s offered in the federal flood program,” he said.

Currently, Causey said there are 33 communities in the state where you can’t get federal flood insurance.

The new state policies break down flood zone areas more precisely than federal maps.

“They’ve mapped the whole state down to 30 meters square, so they can tell on your property if a little section of your backyard is in a flood zone or not,” Causey said.

The state hopes to roll out its private flood policies early in 2021, and they will be available through commercial insurance companies.

Causey said that will give consumers a choice of which type of flood policy they want to buy.

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