How Does Flood Insurance Work?

Posted: May 21, 2020

Flooding is such a common occurrence in Charleston, SC, that if you own property in the area, flood insurance can be a valuable investment—and it is sometimes even required. But how exactly does flood insurance work? Learn everything you need to know about flood insurance, and request a quote today.

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What Does Flood Insurance Cover?

A flood—from an insurance perspective—is defined as water that has done damage to a person’s property or has spread across at least two acres. Floods can cause serious damage to your home or structure, which could cost thousands of dollars to repair. Flood insurance, however, can help you protect yourself financially if this type of natural disaster affects you.

Although you may have a separate homeowner’s insurance policy to cover some areas of damage, flood insurance policies provide even more coverage for items such as the following that are caused specifically by flooding:

  • Replacing electrical and plumbing systems damaged by flooding
  • Structural damage
  • Air-conditioner, water heater, and furnace damage
  • Debris clean-up

Our team at King Street Agency can help you find an insurance policy that will best protect your assets if flooding occurs. Request a quote today.

When Is Flood Insurance Required?

In Charleston, there are different flood zones that are categorized by risk level. It’s important that you’re aware of which zone your structure is located in. Depending on your property’s location, you may be required to purchase flood insurance:

  • If your property is located in a high-hazard zone, it is likely that you will be required to own flood insurance.
  • If you own property in a moderate or low-risk zone, you may not be required to purchase flood insurance.

However, given the frequency and unpredictability of flooding due to Charleston’s heavy rainstorms and hurricanes, it’s recommended that most residential and commercial property owners acquire flood insurance regardless of zoning.

Does Home Insurance Cover Floods?

Home insurance does not cover damage from floods. It can, however, provide coverage against other types of water damage that are not defined as a flood.

Homeowner’s insurance also protects against damages to your home due to other causes, such as some aspects of natural disasters, claimed events that cause your home to be uninhabitable, and the stealing of claimed items, for example.

To learn more about what your homeowner’s insurance policy covers, contact our insurance specialists today.

Hurricane Insurance vs Flood Insurance

Although hurricanes can certainly cause flooding, there is a big difference between hurricane insurance and flood insurance. Hurricane insurance primarily protects against damages done to property caused by hurricane winds. In South Carolina, hurricane coverage is often included in your homeowner’s insurance policy.

A flood insurance policy, however, must be purchased separately from your homeowner’s insurance policy. As mentioned previously, if the definition of a flood has been met, these policies will offer coverage for many types of damages that floods can produce. If you want complete protection from a hurricane, flood insurance is necessary, as flooding due to hurricanes is likely to occur—but hurricane policies typically only cover damage associated with wind.

How Much Does Flood Insurance Cost?

The cost of flood insurance depends on your specific situation. When determining the price of your coverage, factors such as the following will be considered:

  • The location of your property, as in what type of flood zone you’re in
  • The age of your home or structure
  • The number of floors your home or structure possesses
  • The level of coverage you’d like to purchase

Since there is so much variation in the price of flood insurance, the best way to know how these factors will influence the cost of your coverage is to request a quote.

Get A Quote

We hope you have a better understanding of how flood insurance works. If there is any potential that your home or business could be affected by this kind of disaster, a flood insurance policy can protect your assets, so you can avoid paying thousands of dollars in damages. Don’t go another day without this important policy—instead, get a quote from King Street Agency today.

Our team has years of experience in providing flood insurance to both home owners and businesses. Plus, with access to private market flood carriers, we’re often able to provide you with better coverage and premiums than going through FEMA or NFIP. We look forward to helping you find the best policy for your needs.

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