What homeowners should know about flood insurance in North Carolina

6/5/2023 (Permalink)

Does your home insurance cover Water Damage?

Are you Covered?

Am I Covered? The first question homeowners or renters ask themselves after suffering water damage - whether it’s flooding caused by a significant storm or brought on by firefighting efforts. And following a disaster or emergency, the insurance claims process can add more stress to an already overwhelming situation. 

Fortunately, there’s a local resource to restore your home and help you navigate the insurance process: SERVPRO of NW Charlotte, Lincoln County, Southern and NE Gaston County. No property damage restoration project is too large for our highly trained and certified professionals, and we’re a preferred vendor for many insurance companies. 

Adjusters understand SERVPRO’s goal is to provide customers with the best service (and peace of mind!) possible as we all work together. Our professionals provide 24-hour emergency response, quickly identify and mitigate damage, assess the loss, restore the damage, and develop a thorough electronic case file for customers and adjusters.  

However, long before a disaster or emergency strikes, homeowners should understand the ins and out of their insurance policies so there are no surprises about what is - and what’s not - covered. Below are some North Carolina Department of Insurance responses to seven commonly asked questions about flood insurance.

1. Does my policy cover flood damage to my home and its contents?

Unfortunately, homeowner, renter, and tenant policies specifically exclude coverage for water damage due to flood, which is considered an “excluded peril.” Homeowners may purchase a separate flood insurance policy through the federal government. Note: Flood insurance isn’t just for properties in particular flood hazard areas; nearly 30 percent of flood insurance claims are for properties outside floodplains.

2. What is the National Flood Insurance Program (NFIP)?

In 1968, the federal government established NFIP. The Federal Insurance Administration, which is part of the Federal Emergency Management Agency, administers the program. NFIP makes flood insurance available to property owners in communities that help reduce further flood losses by adopting and enforcing floodplain management ordinances. Property owners must be within a city, township, or county participating in the NFIP by enforcing floodplain management standards. You only need to live in a participating jurisdiction - not in a flood plain - to be eligible to purchase flood insurance.

3. Am I covered for sewage backup in my basement if I added an endorsement to my homeowner’s policy?

Standard homeowner policies don’t cover water damage due to backup of sewer or sump pump; however, many companies will sell this coverage through a separate endorsement or addition to the basic policy.

4. If there’s seepage in my basement, do I have water damage coverage for the contents?

Standard homeowner policies don’t cover water damage caused by seepage through basement walls or floors, and there isn’t an endorsement available for this type of water exposure.

5. If I purchased special coverage for some of my personal property and then added it to my homeowner’s policy, are those items covered for flood?

Personal property items you can schedule for coverage in an endorsement to a standard homeowner or tenant policy include Jewelry, computers, cameras, musical instruments, silverware, golf equipment, fine arts, postage stamps, and rare collectibles.

6. Is there coverage for the fire damage on my flooded property?

Standard homeowner policies exclude flood as a covered cause of loss; however, it gives back coverage for fire, explosion, and theft in the event of a flood.

7. Receding flood waters left debris all over my property. Is debris removal covered?

Standard homeowner policies provide a certain amount for debris removal, but only if covered peril causes the loss. Since flood is not a covered peril, there would be no coverage.

Water damage cleanup and restoration

SERVPRO is locally owned and operated and is part of the Mecklenburg, Lincoln and Gaston communities. Our water damage repair and restoration technicians are employees, not contractors. They use advanced water damage inspection and extraction equipment to find and remove moisture quickly. To learn more, call us anytime at (704) 393-7890 or request help online.