Did You Know...
A quarter of all flood insurance claims come from areas with a low to moderate risk.
FAQ
Frequently Asked Questions
Since opening our doors in 2010, our objective has been to not only provide the best flood insurance options, but also to educate our customers on what flood insurance is, why it is needed, and how South Carolina Flood Insurance can help. Here you’ll find answers to some of our most frequently asked questions – about both the requirements and flood insurance coverages that are available in South Carolina.
General Questions
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Buying flood insurance is mandatory for all federal or federally related financial assistance for the acquisition and/or construction of buildings that are in high-risk flood areas (Special Flood Hazard Areas or SFHAs).
The amount of flood insurance required by the Flood Disaster Protection Act is the lesser of the following:
- The outstanding principal balance of the loan, or
- The insurable value of the structure.
- The maximum amount of coverage offered by the NFIP available for that particular property.
If the property is in a low to moderate risk area as opposed to a high-risk area, federal law actually doesn’t require flood insurance. However, flood insurance is typically recommended since statistically speaking approximately 1 in 4 flood claims come from low to moderate risk areas. If any maps are revised during the life of your loan and the risk status of your property changed from low to high risk, your lender will notify you and you would then be required to purchase flood insurance.
Yes. As long as your community participates in the NFIP you are eligible to purchase a flood insurance policy that can offer the same level of coverage you would receive if you did live in a high-risk area.
Flood damage protection is Not typically offered in a homeowner’s insurance policy.
Unfortunately, no. Federal Disaster Assistance typically comes in the form of a low interest loan to help cover flood damage costs, there is no compensation for your losses. What’s more, these loans are only available if a disaster is formally declared by the president.
There are many private insurance companies that will offer Excess Flood Protection; this type of policy offers coverage that far surpasses the limits of coverage offered by the NFIP.
Yes. If you received disaster assistance in the form of a loan or federal grant, you are required to cover the building for flood insurance for as long as you own it. If you wind up selling the building/property, you must inform the new owner of the requirement to purchase and maintain flood insurance. If there is a failure to acquire and carry flood insurance it can result in future denial of federal disaster insurance.
Yes. The Preferred Risk policy is available for homes or building located in low to moderate risk areas.
Poorly designed drainage systems, broken water mains, rapid accumulation of rainfall and/or snowmelt can all bring about situations that cause flooding. Properties that are located on hillsides can be effected by mudslides even, these situations are all typically covered under a standard flood insurance policy. During the term of a 30-year mortgage, structures that are located in high risk flood areas have a high chance of suffering flood damages. In fact, a property that is mapped in a high-risk area is actually five times more likely to suffer flood damages than fire damages during the lifetime of a mortgage.
