The flooding and destruction caused by Hurricane Helene, which became a tropical storm as it passed through western North Carolina, caused many people to lose their homes and everything in them. 

In situations like this, many homeowners may think that their regular insurance covers flood damage, but this is not always true. You need to have a specific flood policy to be fully covered.

In the case of tenants, most people do not realize that they should purchase renter’s insurance to cover their belongings and other personal property in the event of a fire, flood, or other natural disaster, since it is optional. 

In order to answer some questions about flood insurance and other natural disasters, we have contacted the North Carolina Department of Insurance (NCDOI) for first-hand information. Barry L. Smith, NCDOI Deputy Director for Communications and Security Officer, answered our questions. 

What insurance covers floods and other natural disasters?

Smith: “People can purchase flood insurance through the federal National Flood Insurance Program (NFIP). There is a private insurance company that sells flood insurance in North Carolina, Incline Casualty Company.” 

According to Smith: 

• Mobile home insurance covers flooding
• Comprehensive car insurance covers flood damage
• Standard homeowners insurance policies DO NOT cover flood damage. 
• Neither do homeowner policies (usually written for non-owner-occupied dwellings and sometimes written for mobile homes) or renters policies.

Are people required to purchase flood insurance?

Smith: “People are not required by law to buy homeowners or renters insurance. However, mortgage companies and banks generally require you to buy homeowners insurance if you have a loan. Mortgage companies may also require you to buy flood insurance if, based on their underwriting criteria, they deem your property to be at risk of flooding.” 

When is it necessary to purchase flood insurance?

Smith: “Residents of coastal areas tend to be more likely to buy flood insurance than inland residents. Part of that is because mortgage companies tend to require it in coastal areas more than inland ones.”

Smith cited Insurance Commissioner Mike Causey as encouraging residents of North Carolina’s foothills and mountains to purchase flood insurance. 

He often says, “If it rains on your house, you need flood insurance.” Commissioner Causey also points out that for people who live in low-risk flood areas, flood insurance is not that expensive.

Does standard insurance cover floods?

Smith: “Some people may not realize that standard homeowners policies do not cover flood damage. They may think flood insurance is expensive, although it is not really expensive if your property is in an area that has a low risk of flooding.” 

The official repeated that only one private insurer offers flood insurance in North Carolina, Incline Casualty Company.

“Most flood insurance policies are covered by the National Flood Insurance Program (NFIP),” he said. 

What the NFIP covers: offers insurance for people living in high-risk flood areas. This program is backed by the federal government and covers structural damage and anything inside the home.

What is not coveredFlood policies do not cover certain things, such as damaged cars, cash or belongings stored outside the main home.

NCDOI opens two Helene victim assistance centers

NCDOI recently opened two Victim Assistance Centers (VACs) in Helene, North Carolina, where individuals can receive in-person and on-site assistance for all insurance-related matters. 

What can people who come to these centers expect?

Smith: “VACs will provide in-person and on-the-ground recovery assistance and insurance-related support to those directly affected by Hurricane Helene. If a victim is uninsured, we will provide information about other organizations that can assist residents.”

Do you have staff who speak Spanish?

Smith: “We have Spanish-speaking on-call staff (that is, they call you if necessary). 

What documentation must be submitted to the VAC?

Smith: “No documentation is required. However, it may be helpful if residents coming to our centers have their insurance policies, if available.” 

Where are the centers?

NCDOI opened the centers on Monday, Oct. 7, two weeks after the Sept. 26 disaster caused by Helene in Western North Carolina, and said it will open additional centers soon.  

One site is in Wilkes County in the northwest corner of the state and the other is in Gaston County in the foothills region near Charlotte. The NCDOI also opened a third VAC in the town of Boone in Watauga County in the mountains on Tuesday, Oct. 8. 

Smith said anyone can go to these centers, regardless of county of residence. “There are no restrictions,” he stressed. 

Wilkes: NCDOI Office at 307 Ninth St., North Wilkesboro, NC 28054. Open 9:00 am to 4.00:XNUMX pm Monday through Friday. 

Gaston: NCDOI Gastonia Regional Office, located at 1422 Burtonwood Drive, Suite 101, Gastonia, NC 28054. Open 9.00:4.00 am to XNUMX:XNUMX pm Monday through Friday. 

Watauga: located at Appalachian State University, at 263 Locust Street, Plemmon Student Union Bldg, Floor 2, Boone, NC 28608. 

Spindale: Located at Spindale House, 119 Tanner St, Spindale, NC 28160. Beginning Tuesday the 15th from 9:00 a.m. to 4:00 p.m.

Arden: Opening Wednesday, October 16 and Thursday, October 17 at The Radiant Church, 3839 Sweeten Creek Road, Arden, NC 28704

The NCDOI also has a mobile Victim Assistance Center, which travels to different towns to serve individuals and families. You can see updated locations on their website. Facebook.

Learn more

For assistance with insurance matters, you may contact the North Carolina Department of Insurance’s Consumer Division at: 1-855-408-1212. 

You can also check the site from NCDOI for updates related to Helene.

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