Why you may want to consider flood insurance

May 31--SOUTHEASTERN N.C. -- Most of the damage and danger from Hurricane Matthew was due to flooding and not necessarily to strong winds.

Although the storm pounded the coast of North Carolina on Oct. 8, the effects continued to impact parts of the state, including many inland areas, for days as rivers filled and crested.

The state of North Carolina requested $929 million in federal aid for damages caused by Hurricane Matthew. Gov. Roy Cooper announced in early May that state officials had learned they would receive less than 1 percent of that request.

Property owners can obtain insurance to help protect against losses due to flooding.

According to an earlier release from the governor, Robeson, Cumberland, Edgecombe and Wayne counties suffered some of the worst flooding in the state's history.

Parts of Pender County suffered flooding days following the storm as the Black River swelled and overflowed, shutting down roads and flooding homes and neighborhoods near Currie.

Flood zones

When it comes to knowing whether a homeowner or business owner needs or should have flood insurance, Don Bullard, who has worked in the insurance industry for nearly 45 years, said for some it is mandatory and for others it comes down to comfort level.

"First off, if you have a mortgage on your house, the mortgage company is going to require you to carry flood insurance if you are in a flood zone," he said. "That is in a 100-year floodplain where it is estimated that it will flood within 100 years. If you don't have a mortgage, it's up to you whether you have flood insurance or not."

Bullard said even if a home or business is not in the 100 year floodplain that does not mean they are out of the water, so to speak.

He said when Hurricane Fran hit in 1996, it affected areas that were in a 500-year floodplain, meaning they were only estimated to flood every 500 years.

Bullard suggested home buyers new to an area ask around to those who have lived there for 40 or 50 years. Those residents, he said, will have the best knowledge of the likelihood of flooding.

But if a home is anywhere near a river or stream, he said, it may still be prudent to have flood insurance to be on the safe side.

He said the average price for flood insurance for a non-flood zone area is $400 a year.

"That's less than $35 a month to be safe," he said. "For anyone near a stream or tributary to have that just for peace of mind."

Pricing and coverage

The price of flood insurance for those within a flood zone can be significantly different, Bullard said.

He said the price can range from $450 to between $7,000 and $10,000. The more likely an area is to flood, the higher the cost of insurance.

Homeowners in the lowest flood zones can raise their homes to lower their premiums, he said.

The best place to get flood insurance is through the same company a person gets their home insurance through, Bullard said, so a homeowner is not dealing with multiple agencies.

Flood insurance covers the price of the home when impacted by external rising water, so the insurance would not cover flooding from say a busted pipe, Bullard said.

When it comes down to making a decision on flood insurance, Bullard said it adds up to a person's risk tolerance.

"Some people are very tolerant and some people aren't," he said. "It's just a matter of individual decision and how comfortable you are. If it were me, I probably would get it because I sleep better having it and only spending $450 a year."

Reporter Hannah DelaCourt can be reached at 910-343-2075 or Hannah.DelaCourt@StarNewsOnline.com.

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