Charleston, South Carolina, is a beautiful coastal city but is also prone to flooding due to its low elevation and proximity to the Atlantic Ocean. The city has experienced a number of flooding events that have had devastating financial impacts on the community. For example:
- Hurricane Hugo made landfall near Charleston on September 21, 1989 as one of the most powerful hurricanes to hit South Carolina. The extensive flooding and storm surge contributed greatly to the estimated damages of over $7 billion (adjusted for inflation).
- In October 2015, a slow-moving storm system dumped as much as 24 inches of rain in some parts of Charleston, leading to significant flooding in neighborhoods, roads, and businesses. Estimates at the time suggest the damages from this event at $100 million to $150 million.
- The 2016 coastal flooding from heavy rain and storm surge caused by Hurricane Matthew in and around Charleston resulted in damages in the range of $1 billion.
And the list goes on. In recent years, Charleston has faced increasing flooding incidents due to its geographic location and factors related to climate change, as well as infrastructure challenges.
Isn’t that what insurance is for? To provide financial protection against such losses?
Well, yes, but …
No Flood Coverage from Homeowners Insurance
It’s common knowledge that lenders require borrowers to maintain homeowners insurance on mortgaged property. However, most standard homeowners insurance policies exclude coverage for flood damage.
Is Flood Insurance Really Necessary?
You’re probably going to need a separate flood insurance policy to protect your financed property against flood damage if it’s located:
- In a Special Flood Hazard Area (SFHA)—a zone designated by the Federal Emergency Management Agency (FEMA) because of a significant risk of flooding. SFHAs are often identified as zones A and V on flood maps. Properties located in these zones are usually required to have flood insurance if they have a mortgage from a federally regulated or insured lender.
- Near the waterfront or in low-lying areas vulnerable to flooding from storm surges and higher than normal tides. In Charleston, these vulnerable areas include places like the Battery, Waterfront Park, and parts of James Island.
- In a historically flood-prone neighborhood, such as West Ashley, parts of North Charleston, or close to the Ashley and Cooper Rivers.
Much of the Charleston area is prone to flooding, and flood damage isn’t covered by most home insurance. So there’s a good chance you may need to purchase separate flood insurance, to protect your investment whether or not it’s legally required. A Charleston-based realtor or insurance agency should be able to tell you your property’s flood zone designation and whether flood insurance is necessary.
What Flood Insurance Does and Does Not Cover
Flood insurance typically covers damage to personal property and the structure of the home due to flooding.
The building itself is covered for damage to walls, floors, ceilings, foundation and any attached structures like garages or decks. Some flood insurance policies may limit the coverage for damage to basements or crawl spaces. Flood insurance also covers damage to electrical, plumbing, heating, and air conditioning systems as well as built-in appliances such as water heaters, furnaces, and dishwashers.
Flood insurance provides coverage for personal belongings such as furniture, electronics, clothing, and other personal items. Coverage for valuables like currency, stock certificates, artwork, antiques, and other collectibles may be subject to limits or exclusions.
Additionally, flood insurance typically covers costs associated with removing debris after a flood, which can help in the cleanup process. And if a property becomes uninhabitable due to flooding, flood insurance may cover additional living expenses, such as temporary housing.
Flood insurance policies commonly exclude:
- Damage caused by seepage or gradual accumulation of water, as opposed to sudden flooding.
- Damage to vehicles (must be covered by auto insurance)
- Damage from sewer backups unless specifically added to the policy.
When purchasing flood insurance, review the policy carefully to understand the coverage, limits, and exclusions specific to your situation.
National Flood Insurance Program (NFIP)
The NFIP is managed by FEMA and offers flood insurance to homeowners, renters, and businesses. Charleston participates in the program, making residents eligible to purchase NFIP flood insurance policies. But be aware that not all insurance agents offer NFIP policies. To find a participating agent:
- Visit FEMA’s Agent Locator: FloodSmart.gov – Find an Insurance Provider.
- Call the NFIP Help Center at 1-800-427-4661 for assistance.
Some private insurers offer flood insurance policies that may provide additional coverage or competitive rates.
Requesting Flood Insurance Quotes
When speaking with insurance agents, be prepared to supply details about your property, such as its age, construction type, and location. To determine your property’s flood zone, check FEMA’s Flood Insurance Rate Maps (FIRMs) by visiting the FEMA Flood Map Service Center online.
You may need an elevation certificate, which provides information about your property’s elevation relative to the base flood elevation, to get an accurate insurance quote. If your property is elevated above the base flood elevation, you may qualify for reduced flood insurance premiums. And having an elevation certificate can be a selling point if you decide to sell your property, as it provides transparency about flood risks.
When comparing flood insurance options, understand that NFIP policies typically have a 30-day waiting period before they become effective. The waiting period may be waived in certain circumstances, such as when flood insurance is required for a loan closing.
With flood insurance in place, you can face the next extreme weather event without undue worry about the financial consequences of damage to your home and personal property, allowing you to concentrate on your family’s physical safety.
Why Choose Crosby Insurance Group for Flood Insurance in Charleston?
Charleston’s coastal beauty comes with a high risk of flooding, and Crosby Insurance Group is here to help you protect your property. Our experienced agents assess your risks based on factors like location and elevation to recommend the right coverage for your needs. We simplify the process by comparing policies, tailoring coverage to fit your budget, and providing ongoing support. If you ever need to file a claim, we’ll stand by your side to ensure you receive the compensation you deserve. Contact us today.
