Follow Kevin Twitter Facebook
Email Kevin Email
Residential Real Estate
Aug 15, 2014

Flood Insurance: What You Need To Know To Protect Your Investment

Sponsored Content provided by Kevin McKoy - Broker, Network Real Estate


If you live in coastal North Carolina, you must know by now that it’s hurricane season. In the unfortunate event of property damage brought on by a flood, hurricane or tropical storm, your flood insurance policy is the only thing standing between you and a potentially massive debt. For first-time homeowners, there is no time like the present to protect your real estate investment by purchasing flood insurance. As a coastal real estate company, Network Real Estate has seen the devastation that can ravage homes and finances, and we’re here to help.

Let’s look at the numbers. According to the NFIP, the average cost for flood insurance is $570 annually. The average flood damage claim is $30,000. Although the cost of flood insurance is unique to each homeowner, the statistics suggest that flood insurance is a wise investment indeed. 

Flood insurance is available through the National Flood Insurance Program (NFIP), which is a national program of the Federal Emergency Management Agency (FEMA), in any area that participates in the NFIP.  Flood insurance is divided into two coverage types: contents and property. Contents coverage refers to the goods and items within the home, and the property coverage refers to the home itself. The maximum property coverage amount is $250,000, and the maximum content coverage is $100,000. You may also want to invest in additional private insurance, depending on the value of your home and the risk factors in your area. If you live in a designated Special Flood Hazard Area, the law actually requires that you purchase flood insurance in order to receive a federal loan.

Unlike other kinds of insurance, flood insurance coverage doesn't begin on the date of purchase. When you purchase national flood insurance, coverage will take effect 30 days after the initial payment. Supplemental insurance through a private insurance carrier also typically has a 30-day waiting period. To avoid gaps in coverage, it’s ideal to purchase flood insurance during the due diligence period. 

Importantly, make sure you have homeowner’s insurance in addition to flood insurance. Flood insurance, whether national or private, applies only to those damages brought on as a direct result of weather damage. If your home floods for structural reasons, for example, your flood insurance policy won’t cover it. Conversely, your homeowner’s insurance won’t cover damages caused by floods, storms and hurricanes. Cover your bases by getting both types of coverage, and make sure you read the fine print in both policies to understand what is and isn’t covered by your insurance company.

Particularly for homes along the coast, seeking coverage for all possible kinds of damage is an important part of protecting your investment and lessening your and your family’s strife in the event of disaster. Don’t go into the home-buying process without an expert on your side to help you cover your bases – contact Network Real Estate today to get started with one of our qualified Realtors today.

Kevin McKoy is a GRI-certified, licensed real estate broker at Network Real Estate, which has exclusively served a high volume of property sales and purchases in the greater Wilmington area for over 30 years. With three offices at College Road, Historic Downtown and Pleasure Island, Network’s brokers are widespread and well-versed in this marketplace, making Network a preferred Real Estate company for first-home buyers and beyond.

20489 networkrealestate insightsad final
Ico insights

INSIGHTS

SPONSORS' CONTENT
Mel profilephoto

Influencer Marketing: Tap Into Your Audience On A Budget

Mel Beasley - Wide Open Tech
Brookeskipper saltair headshot2

Steps For Improving Indoor Air Quality

Brooke Skipper - Salt Air
Ubs chadpearson headshotresized

The Three Dimensions Of Selling Your Business

Chad Pearson - UBS Decision Point Wealth Consulting

Trending News

Will $500M Development Across The River Sink Or Swim?

Cece Nunn - Oct 15, 2021

Wilmington Entrepeneur Launches MyPeriodPal

Johanna Cano - Oct 15, 2021

NCino's Expansion Progresses At Wilmington HQ

Cece Nunn - Oct 15, 2021

Info Junkie: Jhaniqua Farrar Palmer

Staff Reports - Oct 15, 2021

New Eateries Add Flavor To District

Justin Pope Williams - Oct 15, 2021

In The Current Issue

Health Care Heroes: Volunteer

This category honors volunteers at a health care provider or other health-related organization who are considered exemplary by people within...


Health Care Heroes: Innovation

The Innovation category honors an individual or team behind a new scientific discovery, procedure, treatment or device that can save lives o...


Heroes Who Stay The Course

Heroes aren’t those who only rise to the occasion in a movie’s big fight scene. In the real world, they tend to be those who keep showing up...

Book On Business

The 2021 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

Trying to Grow a Business?
2020 Health Care Heroes
2020 WilmingtonBiz 100