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Erin Gobler is a personal finance writer and journalist who has been writing for Compare.com since 2023. With more than five years of experience personal finance experience, Erin has covered topics such as investing, credit cards, mortgages, insurance, and more.
Her work has been featured in major publications like Business Insider, Fox Business, and Time.
Erin received her bachelor’s degree from the University of Wisconsin-Oshkosh in 2013, studying journalism and political science. She also received a certificate of financial planning from Boston University in 2022.
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Matthew Gross is an editor at Compare.com. With a background in editing and SEO, he’s passionate about creating content that helps readers get the information they need to make more informed decisions. Prior to Compare.com, Matthew brought his user-centered approach to his work with global brands like Apple and Adobe.
Matthew graduated from Illinois State University, where he earned his bachelor’s degree in Journalism.
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Because of its coastal location, North Carolina is vulnerable to hurricanes and other flooding events. Unfortunately, traditional homeowners insurance doesn’t cover flooding, which can leave homeowners footing large repair bills.
Depending on your mortgage and where you live, you might need to buy flood insurance. That said, your home can still flood even if you aren’t in a high-risk area, so you might want to consider flood insurance in any event.
To help get you started, we’ll break down the flood insurance requirements in North Carolina, the different types of coverage available, and how to choose the right policy.
Many North Carolina communities have a high risk of flooding. Your mortgage lender may require you to buy flood insurance if you live in one of these areas.
The average National Flood Insurance Program (NFIP) premium in North Carolina is $1,093 per year. But premiums vary depending on your flood risk and your home’s building materials.
You can get flood insurance through the NFIP or a private insurer, but each has different coverage levels and availability.
Many homeowners in North Carolina should consider buying flood insurance. If you live in a high-risk flood zone, as determined by the Federal Emergency Management Agency (FEMA), federal law or your mortgage lender may require you to have flood insurance. And even if you’re not in one of these high-risk areas, flood insurance may still be a good idea.
North Carolina is at risk of hurricanes, coastal storms, heavy rainfall, and river overflow — all of which can cause major damage to homes and other buildings. Hurricane Helene hit North Carolina in September 2024, causing billions of dollars in damage, including in the Asheville area and smaller Appalachian communities.[1]
North Carolina ranks No. 6 nationwide in the number of flood insurance claims and No. 12 in total number of payments, according to FEMA.[2] In the past 50 years, homeowners in the state have received nearly $1 billion in flood insurance claim payments.[3]
Your homeowners insurance policy doesn’t cover flooding, including damage from hurricanes and other major rainstorms. Without flood insurance, you could be on the hook for tens or hundreds of thousands of dollars worth of damage.
Compare quotes from top insurers in the state and save money in seconds.
North Carolina doesn’t require homeowners to have flood insurance, but federal laws require it for homeowners in high-risk areas.
Federal law requires homeowners with a federally backed mortgage who live in a special flood hazard area (SFHA) to buy flood insurance. An SFHA is any flood zone that starts with a V or an A on FEMA’s flood map.[4] [5]
North Carolina’s coast and many inland areas fall into SFHAs, meaning you need flood insurance if you have a federally backed mortgage, like from the Federal Housing Administration, Department of Veterans Affairs, or Department of Agriculture.
You may still need flood insurance even if you don’t have a federally backed mortgage. Private lenders can also require flood insurance. For example, Fannie Mae and Freddie Mac require flood insurance for homes in SFHAs.
FEMA has a handy tool that lets you enter your address and see if you’re in a designated flood zone. Check it out here.
FEMA’s flood map shows the risk of flooding for different areas, and every home falls into one of the flood zones. Knowing which zone your home is in can help you determine the risk of flooding and whether it’s a good idea to buy flood insurance.
Flood Zone Designation  | Flood Risk | Requirements |
|---|---|---|
| A | High | All federally backed mortgages |
| V, VE | High | All federally backed mortgages |
| B & X | Moderate | Some private lenders |
| C & X | Minimal | None |
| D | Undetermined | None |
Zones A, V, and VE: Flood Zone A represents high-risk areas, while Flood Zones V and VE are specifically coastal high-risk areas. North Carolinians who own homes in these areas typically need to buy flood insurance. These zones have a 1% chance of flooding each year and a 26% chance during a standard 30-year mortgage term.
Zones B and X: Zones B and X have less risk of flooding, but there’s still a 0.2% chance each year. North Carolina has many moderate-risk flood zones just off the coast and around its rivers.
Zones C and X: In these unshaded areas on the flood map, the chance of flooding in any year is less than 0.2%. But that doesn’t mean your risk is zero, and you might still want to think about buying flood insurance.
Zone D: FEMA either hasn’t conducted a flood hazard analysis or hasn’t determined its flood risk for homes in Zone D.
North Carolina’s Flood Risk Information System has an interactive map that allows you to check an area’s flood risk.[6]
Even if you don’t live in a high-risk flood zone, you may still want to consider having flood insurance. Around 25% of flood insurance claims come from areas outside of high-risk flood zones, according to FEMA.[7] Much of western North Carolina falls in low-risk flood zones, but heavy flooding and significant damage still hit the area in 2024.
The NFIP is a federally managed program that offers flood insurance to homeowners and renters. While many people are eligible to buy their flood insurance through the NFIP, you also have the option of buying private flood insurance.
The table below breaks down some of the most important differences between NFIP and private flood insurance coverage, according to our research.
Factor | NFIP | Private Flood Insurance |
|---|---|---|
| Coverage limits | $250,000 building coverage $100,000 contents coverage8 | Varies by insurer, often up to $1 million or more |
| Average costs | $780 per year | Varies by insurer |
| Waiting periods | 30 days, except for mandated federally coverage9 | Varies by insurer, but often 14 days or fewer |
| Additional benefits | More widely available | Better coverage options |
A key difference between NFIP and private flood insurance is the types and amount of coverage available. NFIP insurance has lower limits and doesn’t have coverages like loss of use or guaranteed replacement. Not having these coverages means your out-of-pocket costs could be higher. Private insurance typically offers more coverage options and higher limits.
That said, private flood insurance may offer more coverage, but it isn’t as widely available as NFIP insurance. NFIP flood insurance is available in more than 22,600 communities, including more than 500 North Carolina communities.[8]
Some popular private flood insurance companies include Neptune Flood, Chubb, and Aon Edge.
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Flood insurance through the NFIP in North Carolina costs an average of $780 per year, slightly cheaper than the national average of $786, according to FEMA data. But average rates can vary depending on where you live. For example, Wilkes, Surrey, and Alexander counties have some of the highest average rates in the state.
FEMA’s Risk Rating 2.0 assessment system looks at the following factors when setting rates:
Likelihood of different types of flooding
Building characteristics, like foundation type, elevation, etc.
Elevation and distance from flooding sources
Replacement cost
Flooding prevention methods
Levee performance[9]
You’ll likely find less standardization across pricing factors from private flood insurers. Private companies likely use many of the same factors, but they also consider your coverage type and limits, deductible, claims history, and other personal factors.
Flood insurance pays for damage to your home and belongings after a flood. While private flood insurance coverage can vary from insurer to insurer, NFIP insurance includes both building coverage and contents coverage.
Building coverage pays for things like:
Foundation, walls, and staircases
Appliances and systems, including electrical, plumbing, furnace, water heater, and large kitchen appliances
Permanently installed fixtures like carpeting, cabinets, bookshelves, and paneling
Fuel tanks, well-water tanks, and pumps
Solar energy equipment
Detached garages
Your contents coverage pays for damage to most items in your home, including your clothing, furniture, small appliances, electronics, and more. It covers some valuables, but only up to $2,500.
While flood insurance covers many flooding-related losses, it doesn’t cover everything. Here are a few things a NFIP policy and many private policies don’t cover:
Financial assets, including currency, stock certificates, and precious metals
Vehicles
Personal property in your basement
Property outside your home, like landscaping, decks, fences, etc.
Temporary housing and other living expenses
Financial losses due to interruption of business operations
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You can buy flood insurance through either the NFIP or a private insurance company. Make sure to shop around to find the best coverage for your flood risk level, budget, and coverage needs.
Follow these steps when you’re ready to buy your policy:
Figure out your flood zone. Check FEMA or North Carolina’s flood maps to find out your home’s risk of flooding. This information will tell you how important flood insurance is, whether you need to have it, and what your options might be.
Compare NFIP and private options. NFIP policies are more widely available, but you may prefer the more comprehensive coverage that private policies offer. Private flood insurance typically includes loss of use and replacement cost coverage.
Choose coverage limits and deductibles. If you want maximum coverage, a private policy is likely the better option. Consider what coverage limits you need and what deductible you’re comfortable paying if you file a claim.
Plan for waiting periods. NFIP policies take effect 30 days after purchase, while private policies tend to have shorter waiting periods. Make sure to time your policy so you have coverage during hurricane and heavy-rain season.
Compare quotes. Get multiple quotes from NFIP and private insurers so you can compare policies and rates. The cheapest plan isn’t necessarily the best, and checking rates can help you find the right policy.
Whether you choose NFIP insurance or a private policy, you can switch later on. What’s most important is having a policy in place. You can often get the best coverage by working with a licensed North Carolina insurance agent who’s familiar with flood insurance and the state’s unique risks.
Hurricane season in North Carolina runs from June through November.[10] But because of North Carolina’s position on the coast and its robust river system, flooding can happen at any time of year. It’s never too early to start shopping for flood insurance.
Find the best coverage for your home in the Tarheel State
Before you buy your policy, make sure to check out the answers to these common questions about flood insurance in North Carolina.
It depends. You may need to buy flood insurance in North Carolina if you live in a high-risk flood zone and have a federally backed mortgage, or if your mortgage lender requires it. A FEMA or North Carolina flood map can help you determine whether you need flood insurance.
No. Homeowners insurance doesn’t cover flood damage in North Carolina. If your home floods and you don’t have flood insurance, you’ll have to pay for damages out of pocket.
The average flood insurance premium in North Carolina is $780 per year, according to FEMA data. Rates vary based on several factors, including your home’s likelihood of flood damage and construction and replacement costs.
Many major home insurers — including Allstate, American Family, Liberty Mutual, and USAA — offer flood insurance through the NFIP. Other companies — like Neptune Flood, Aon Edge, and Chubb — offer private flood insurance policies in North Carolina.
It depends. It takes 30 days for an NFIP policy to go into effect. Waiting periods for private flood insurance vary by insurer, but most take effect in 14 days or fewer.
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Erin Gobler is a personal finance writer and journalist who has been writing for Compare.com since 2023. With more than five years of experience personal finance experience, Erin has covered topics such as investing, credit cards, mortgages, insurance, and more.
Her work has been featured in major publications like Business Insider, Fox Business, and Time.
Erin received her bachelor’s degree from the University of Wisconsin-Oshkosh in 2013, studying journalism and political science. She also received a certificate of financial planning from Boston University in 2022.
Matthew Gross is an editor at Compare.com. With a background in editing and SEO, he’s passionate about creating content that helps readers get the information they need to make more informed decisions. Prior to Compare.com, Matthew brought his user-centered approach to his work with global brands like Apple and Adobe.
Matthew graduated from Illinois State University, where he earned his bachelor’s degree in Journalism.
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