South Carolina Homeowners and Businesses Should Consider Flood Insurance

No matter where in South Carolina you live, you may need flood insurance to help protect your home, business, family and financial security.

With hurricane season beginning June 1, and a 30-day waiting period required for flood insurance to take effect, now is the time for South Carolina homeowners and businesses to ensure they have adequate coverage.
Flooding is the nation’s number one natural disaster. Most home and business owners’ insurance policies do not cover flood damage.

South Carolina has seen a nearly 25 percent increase in the number of National Flood Insurance Program policies issued during the last three years. Potential driving factors include increased flood awareness since Hurricane Katrina, increased development in coastal high-risk flood areas and changes to flood maps that broaden the high-risk areas.

South Carolina has experienced flooding from many hurricanes and tropical storms during the last 20 years, including Hugo, Fran, Bonnie, Floyd, Charley, Gaston and Frances. Hurricanes can cause major flooding, sometimes hundreds of miles inland. Slow-moving tropical storms can bring torrential rains that saturate the ground and cause water buildup in low-lying areas.

According to the National Flood Insurance Program, or NFIP, if you live in a moderate- to low-risk area for flooding and are eligible for a “Preferred Risk Policy”, your flood insurance premium might be as low as $119 per year, including coverage for your property’s contents. The national average premium for a flood policy is $544 a year. The average premium in South Carolina is $550. To determine your home’s risk and for pricing information, visit www.floodsmart.gov.

Many private insurance companies issue flood insurance under an arrangement with the Federal Emergency Management Agency (FEMA). Insurance companies issue the policy under the company's name and handle claims using the rules, coverages and procedures specified by the NFIP.

Homeowners can buy up to $250,000 of coverage for the structure and up to $100,000 for your personal contents. Businesses can buy up to $500,000 in coverage for the structure and $500,000 in contents coverage. Some private insurance companies offer excess flood protection, which provides higher limits of coverage than the NFIP, in the event of catastrophic loss by flooding. Separate contents coverage is also available. Renters can buy protection for up to $100,000.

In order to determine how much insurance you need, download free home inventory software from the South Carolina Insurance News Service Web site at www.scinsurance.net or call 803-252-3455.