Do You Need Flood Insurance When Buying a Home in Southport, NC?
If you're thinking about buying a home in Southport, NC, there's one question I hear from relocation buyers all the time: “Am I going to need flood insurance?”
It's a fair question. We're on the coast.
But one of the biggest misconceptions I hear is that if you're buying anywhere near the coast, you're automatically going to need flood insurance.
That's not necessarily the case.
And this is definitely something you want to investigate before you fall in love with a house.
Not Every Home in Southport Has the Same Flood Risk
Two homes can both have a Southport address and have very different flood considerations.
Where the property is located, its elevation, the designated flood zone and characteristics of the property can all matter.
That's one reason I don't like making blanket statements about flood insurance based simply on a home's ZIP code or how close it looks to the water on a map.
We need to look at the specific property.
What Is a Flood Zone?
FEMA maps communities into different flood zones based on flood risk.
Some properties are located in higher-risk Special Flood Hazard Areas, while others are located in areas considered to have lower flood risk.
But here's something important: Being outside a high-risk flood zone does not mean a property has zero flood risk. Flooding can happen outside designated high-risk areas too.That's why I encourage buyers to look beyond simply asking, “Is this house in a flood zone?” The better question is: “What should I know about the flood risk for THIS property?”
Will My Mortgage Company Require Flood Insurance?
This depends on the property and the type of financing. For homes in certain high-risk flood zones, a lender may require flood insurance as a condition of the mortgage. For other properties, it may not be required by the lender.
That doesn't automatically mean you shouldn't consider it.
Flood insurance and homeowners insurance are also two different things, and buyers relocating from other parts of the country may not realize that standard homeowners insurance generally doesn't cover flooding from rising water.
This is where talking with your lender and a knowledgeable local insurance professional before closing becomes important.
Flood Insurance Isn't the Only Insurance Conversation
When you're buying near the North Carolina coast, I don't want you focusing only on flood insurance. There can be other insurance considerations too. The age and condition of the roof, age of the home, construction type, location and other property-specific factors can affect coverage options and cost. Insurance can also be very different from what you're used to if you're moving here from another state. Homeowners isn't all encompassing. You need homeowners, wind and hail and sometimes flood insurance.
That's why I encourage my buyers to start getting insurance information early in the process instead of waiting until a few days before closing.
What About Homes Near the Water?
This is another place where buyers sometimes make assumptions. A home doesn't necessarily have to be directly on the water to have flood considerations.
And a home that looks close to the water on a map doesn't automatically tell us everything we need to know about its flood risk. That's why we look at the actual property information rather than guessing based on location alone.
What I Tell My Relocation Buyers
When we're looking at homes in Southport, Oak Island or anywhere along the Brunswick County coast, flood risk is simply one of the things we investigate.
I don't want you scared of buying near the coast. I want you informed about what you're buying.
Before you purchase a home, we can look at the property's flood-zone information and ask the right questions. I also encourage buyers to speak directly with their lender and insurance professional about requirements, coverage and estimated costs for the specific property they're considering.
Those numbers are much more useful than something you heard from a friend or read in a Facebook group.
Don't Wait Until You're Under Contract to Start Asking Questions
If you're relocating to Southport, flood zones and coastal insurance may be completely new to you. That's okay. You don't need to become an insurance or flood-map expert before you start looking at houses.
You just need someone helping you know which questions to ask and when to ask them.
I'm Kim Cotton, a REALTOR® with REMAX Southern Coast in Southport, and I work with buyers relocating to Southport, Oak Island and throughout Brunswick County.
My job isn't to tell you whether you should or shouldn't buy a particular property because of its flood zone. My job is to make sure you know it's something we need to investigate so you can get the information you need from the appropriate professionals and make an informed decision.
If you're thinking about moving to Southport and have questions about buying near the coast, reach out. Sometimes knowing what questions to ask is the best place to start.
Want to learn more about moving here? Visit my Southport NC Real Estate & Relocation Guide for more information about buying and living in Southport.
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