If you're shopping in North Topsail Beach, Sneads Ferry, Surf City, Emerald Isle, or anywhere near the creeks around Jacksonville, flood insurance will come up. Here's how it works for buyers, so it doesn't catch you off guard in the middle of due diligence.
When flood insurance is required
If the home is in a FEMA high-risk flood zone (zones starting with A or V on the flood map) and you're getting a federally backed mortgage, such as a conventional loan sold to Fannie Mae or Freddie Mac, an FHA loan, or a VA loan, your lender will require flood insurance. Cash buyers aren't required to carry it, but on the coast most should still think hard before skipping it.
When it isn't required, but still smart
Homes in moderate- or low-risk zones (often shown as zone X) usually don't require flood insurance. But standard homeowners policies don't cover flood damage, and flooding can happen outside high-risk zones. Getting a quote costs nothing.
How to check a property's flood zone
- FEMA Flood Map Service Center at msc.fema.gov: search by address to see the official flood map.
- North Carolina Flood Risk Information System at fris.nc.gov: the state's map tool, which also shows flood risk details for a property.
- Coastal Barrier Resources System: on barrier islands like Topsail Island, also check the U.S. Fish & Wildlife Service CBRS Mapper. Federal flood insurance through the National Flood Insurance Program may not be available for some buildings inside these areas, which can affect financing.
Get a quote during due diligence
Under the standard NC Offer to Purchase and Contract, you have a due diligence period to investigate the property. Use it to get a flood insurance quote, along with homeowners and wind coverage quotes, and work them into your monthly budget. Ask the seller if they have an elevation certificate. It can make getting an accurate quote faster.
Ask whether the current policy can transfer
NFIP flood policies can sometimes be assigned from the seller to the buyer. Ask your insurance agent whether taking over the seller's policy makes sense for that home.
Condos work differently
In a condo building, the association usually carries a master flood policy on the building. Ask for the HOA's insurance documents, and ask your agent whether you need your own policy for your unit and contents.
The bottom line
Flood insurance is part of the real cost of owning near the water. Check the flood zone early, get quotes during due diligence, and factor the premium into what you can afford. If you're looking at the north end of Topsail Island, start with my guide to homes for sale in North Topsail Beach, NC.
Buying on the coast? I'm Aaron Dominguez, Broker/Realtor with RE/MAX Elite Realty Group, 2023 and 2024 RE/MAX Elite Top Buyer's Agent and a Realtor.com Premier Agent. Call or text 919.793.4090 or see homes for sale in North Topsail Beach.
This article is general information, not insurance or legal advice. Your insurance agent, lender, and closing attorney can confirm the details for your purchase.