Even Noah had flood insurance - you should, too
The experience in New Orleans left a lot of folks wondering about the need for flood insurance. Do you need it in Charleston? After all, this is the famous “Lowcountry.” According to FEMA, everyone should get coverage whether required to or not. It is very important to be aware that most home owners policies do not cover loss from flooding. That is a lesson a lot of people have discovered the hard way.
Many proprties in Charleston are subject to some flood rating. Yet, simply having a flood rating does not always mean that flood insurance is mandatory. Most people in Charleston are not in areas requiring flood insurance.
Flood zone ratings are determined by the Army Corps of Engineers in cooperation with some other organizations. Flooding is not as frequent of a problem here as it may be in the Midwestern US, or other places prone to regular flooding; even so, it is a hazard that you need to understand - especially in as associated with hurricanes. In this area, most flooding hazards are associated with large storms. These storms are infrequent but can bring massive rain and even a storm surge.
"V" Zone**:
The property is in the special flood hazard area and is subject to flooding from rising water and wave action during a 1% chance storm. Properties in this flood zone will be required to be elevated to a designated height, and all enclosures below the designated height will be required to have break-away walls. Flood insurance will be required on a property in this flood zone if a mortgage is taken out on the property. These are the most hazardous of the Special Flood Hazard Areas, or SFHAs. V zones generally include the first row of beachfront properties. The hazards in these areas are increased because of wave velocity - hence the V designation. These property owners pay more than $1,000 annually and flood insurance is mandatory.
"A" Zone*:
The property is in the special flood hazard area and is subject to flooding from rising water during a 1% chance storm are and are usually near a lake, river, stream or other body of water. Properties in this flood zone will be required to be elevated to a designated height and will be required to be insured with flood insurance if a mortgage is taken out on the property. Flood insurance is mandatory in all A zones, where premiums can be about $595 annually because of the high potential of flooding. A-zone maps also include AE, AH, AO, AR, and A99 designations, all having the same rates. The different A zones are named depending on the way in which they might be flooded.
"X" Zone:
The property is not in the special flood hazard area. There are no required elevations for properties in this flood zone. Flood insurance is recommended but not required for properties within this flood zone. These are minimal-risk areas where flood insurance is not mandatory.
What you need to know about flood insurance and earthquake insurance
Looking for property near the ocean? With nearly 200 miles of coastline, South Carolina boasts some of the most spectacular beaches in 
the world. But before buying, you should be aware of other factors that accompany the pleasures of owning coastal property.
Most oceanfront property is vulnerable to natural forces such as storms and beach erosion, which can pose threats to any prospective property and undercut its value. Whether you are considering an undeveloped lot or an existing building, there are critical issues you should examine before committing to purchase.
South Carolina's coastline is constantly changing due to a common coastal hazard—beach erosion. Coastal erosion can be long-term, chronic erosion from a variety of causes, or it may be short-term as the result of a single or series of storm events. In addition to erosion, beachfront homes may also be threatened by high wind and flooding generated by storm surge. And in South Carolina, there is a threat of earthquakes —the last big one rocked the Charleston area in 1886 and registered 7.6 on the Richter Scale.
Generally, beaches erode more in the stormy fall and winter months than in the calm summer months. Of course, when a beach is hit directly by a hurricane, beachfront erosion can be even more dramatic. Inlets are also affected by seasonal storms and can change configuration rapidly and severely as tremendous amounts of water and sand flow through them. In severe storms, it is even possible for new inlets to form and existing inlets to close. On sandy beaches, erosion associated with storms is often severe because large quantities of sand can be moved quickly offshore from the beach and dunes. This type of erosion is usually called "short-term" erosion because the shoreline can return to its original profile as conditions improve.
Long-term erosion, often called "beach migration," is generally associated with rising sea levels. The ocean has risen about six inches during the last century, causing beaches to migrate landward.
Although this process can cause erosion along the entire oceanfront, areas adjacent to inlets are often the most profoundly affected. Some migrating inlets are constantly moving in one direction. Others may stay in the same general location but expand and contract constantly. These inlets are often called "breathing inlets."
In addition to natural causes, erosion can he set in motion by human activities. For example, a jetty constructed to stabilize an inlet or a structure built to stabilize a beach can trap sand on one side but increase erosion on the other. Such erosion will continue until the structure is removed or the beach adjusts.
Purchasers should always research coastal hazards, seeking information on pertinent laws and regulations from local government, the SC DHEC's Office of Ocean and Coastal Resource Management (OCRM), and your Realtor. Although your real estate agent may not always know the erosion rates for particular oceanfront properties, he or she should advise you of the possibility of erosion and direct you to available sources of information. If a beachfront property is located, in whole or in part, seaward of the legislated setback line or the jurisdictional line, a contract of sale or transfer of real property must contain a disclosure statement. The statement must indicate that the property is or could be affected by the legislated lines; and the statement must include the local erosion rate most recently made available by OCRM for that zone.
Building is determined by a setback line, which is established by using a mathematical formula based on the 40-year erosion rate in that area. New habitable structures must be built as far landward as possible and are limited to a maximum of 5,000 square feet. Special permits must be obtained to build seaward of the baseline. To qualify, the structure (usually a house) must be built as far landward as possible and have no impact on the primary sand dune or active beach area. If the beach erodes and the permitted structure becomes situated on the active beach, the property owner, at his or her own expense, must agree to remove the structure if so ordered by OCRM.
Additions to homes located wholly or partially in the setback area are allowed, provided that the addition and the existing structure together do not exceed 5,000 square feet of heated space. The additions must also be located no farther seaward than the existing structure. The linear footage of the structure parallel to the coast, cannot be increased. Additions made totally landward of the setback area do not require any notice to OCRM.
Several features can prevent or substantially reduce the likelihood of damage from severe storms, erosion, or earthquake. Pilings raise the first floor above expected flood elevations and waves. In many areas, embedding the tip of pilings deeper than five feet below sea level can help a building stand during severe erosion. Any walls constructed between pilings should be designed to break away when hit by waves to prevent damage to the elevated portion of the building. And a solid foundation helps a well-connected building withstand earthquakes.
Elevating a building to protect it from storm surge and flood increases its exposure to storm winds. The key to reducing storm wind damage lies in the quality of the building's design and construction. If you are building a new home on the beach, consider employing the services of a professional engineer to help ensure an adequate structural design. If you are buying an existing home, a professional engineer can help you assess the structure's strengths and weaknesses, as well as suggest structural and non-structural modifications which may help make the house more damage resistant.
Modifications may include:
• adding hurricane clips to improve the roof's ability I, withstand uplift forces of high winds
• installing storm shutters to protect window and door openings from wind-driven rain and debris
• improving attachment of asphalt roof shingles
• reinforcing gable end roofs
• reinforcing the attachment of plywood roof decking to roof rafters with additional nails, screws or adhesives
• reinforcing the attachments of porches and decks to a house's main structure
Remember, however, no home is disaster-proof. There are inherent and unavoidable dangers associated with building homes along the beach. Because of the substantial cost of coastal property, a professional engineering analysis could he wise investment.
Note: Sand dunes are natural features that also provide significant protection during the most severe storms. You can protect and enhance frontal dunes by keeping vehicles and people off them, planting additional dune grasses, and installing sand fences. Keep in mind, however, that dunes protect against short-term erosion caused by very severe, infrequent storms but offer little protection from long-term erosion.
Erosion control structures represent the greatest threat to the preservation of the beach. On an erosional beach, seawalls and rock revetments may actually accelerate erosion, effectively destroying the beach. South Carolina applies a strict regulatory position where these structures are concerned.
If a building is severely threatened by beach erosion, property owners are allowed to use 5-gallon sandbags to provide temporary protection. Local officials determine if a structure is in imminent danger. Sandscraping may also be used to construct temporary protection for coastal structures if local officials determine that a structure is in imminent danger.
A habitable structure that has been destroyed beyond repair due to a natural cause and that is wholly or partially in the setback area may be replaced or rebuilt provided all of the following requirements are met:
a) The total square footage of the replaced structure seaward of the setback line does not exceed the total footage of the original structure seaward of the baseline;
b) The linear footage of the replaced structure parallel to the coast does not exceed the original linear footage parallel to the coast;
c) The replacement structure is no farther seaward than the original structure; and
d) Where possible, the replaced structure is moved landward of the setback line or if not possible, then as far landward as practicable, considering local zoning and parking regulations.
The National Flood Insurance Program (NFIP) was established by Congress to make flood insurance available nationwide to eligible properties. Policies issued under the NFIP include conditions and costs dictated by federal requirements. The NFIP partners with private insurance companies. These private companies sell flood insurance backed by the federal government. In most cases, the federal government in turn guarantees to pitch in if losses occur—thus encouraging private companies to write affordable policies for areas that might normally be considered too risky.
Large discounts on premiums are often available for buildings constructed above minimum standards. For example, discounts are available for buildings elevated on pilings higher than required to avoid storm-surge flooding.
There is a limit to single-family home coverage under the NFIP. The building's structure can be insured for up to $250,000 and the contents for up to $100,000. If the owner wishes to purchase excess flood coverage, the owner may be able to procure flood insurance coverage from a private insurer. However, private insurers regularly reassess whether or not to offer coverage, and it may not always be available.
No law requires that an owner buy or maintain flood insurance. Nevertheless, federally insured lenders, including mortgage companies, banks and savings and loan associations, require buildings to carry flood insurance for the life of their lien if the property is in a flood-prone area. Failure to maintain coverage may permit the lender to declare the balance of the loan due and payable.
Flood-prone areas are identified on Flood Insurance Rate Maps, which should be available at your local building inspector's office. If your building is not in a flood-prone area or you haven't secured a mortgage to purchase your property, flood insurance is optional. However, when building or buying near the ocean, flood insurance is always a good idea, even if it's not required.
Federal flood insurance covers only structural damage—including damage from waves—caused by flooding. As a rule, damage caused by chronic, long-term erosion is not covered. However, since most erosion that causes structural damage is associated with coastal storms, coverage is often available. A Federally-backed flood insurance policy covers only damage to the insured structure. It does not cover damage to land caused by flood, waves, or erosion. And, it does not cover damage from other events, such as hurricane-related winds and wind driven rain. These same limitations may apply to privately underwritten insurance.
When a structure is so badly damaged that it cannot by repaired or rebuilt, an owner could receive all benefits under the flood insurance policy and then discover the coverage is inadequate to cover the cost of removing the structure and/or repaying the loan. In addition, the value of any remaining land may decline significantly if the land has become "unbuildable" for either physical or regulatory reasons.
Many private homeowner policies cover wind damage and water damage caused by wind; e.g. wind blowing out a window and the subsequent rain damage to house contents. But because of the high risk in coastal areas, some private insurance companies are excluding coverage for wind damage. Some companies have even stopped writing new policies in areas that they consider to be at high risk. In response to this, South Carolina has created a "wind insurance pool" to provide insurance coverage to homeowners who cannot obtain it from private sources. This pool, called the South Carolina Wind and Hail Underwriting Association,
is sponsored and subsidized by the insurance industry in South Carolina.
The Wind and Hail Underwriting Association provides coverage only in designated areas of South Carolina—generally the barrier islands and other property close to the ocean.
There is also an emerging trend toward separating severe storm wind coverage from the rest of the homeowner's policy. This separation is triggered when a storm becomes a tropical storm or hurricane and includes losses that occur up to 72 hours after the storm has passed through the area. In these cases, standard deductibles may no longer apply Instead, the homeowner may be responsible for a larger deductible based on some percentage—generally 1 to 5 percent—of the insured value of the home. How property and casualty insurance is bought and sold in high hazard areas is changing. For these reasons, it is a good idea to talk with your insurance agent, read your policy closely, and understand what it does and does not cover.
Note that it is important to maintain wind insurance throughout the year. Not only does this coverage protect you from tropical storms and hurricanes, it provides protection from strong winds related to thunderstorms, tornadoes, waterspouts, and other events. If you wait until a storm is approaching, it will be nearly impossible to obtain coverage. Most companies cease writing any form of property insurance when a storm reaches a given geographic area in the Atlantic Ocean—or they require a waiting period before implementation.
Shop around and compare quotes. More than 85 percent of residents in coastal South Carolina are able to obtain coverage from private insurance companies.
Earthquake Insurance
Most homeowner and rental insurance policies do not cover damage caused by an earthquake but coverage can he added to most policies as an "endorsement" for an additional cost. Earthquake insurance covers the damage to a home and its contents caused by the movement of the earth. Yet, most policies and endorsements do not cover cracking of bricks, mortar, or stucco unless specifically requested. Be sure to check with your agent or company.
Earthquake insurance is sold with a deductible on the amount of coverage, similar to a tropical storm or hurricane deductible. The amount is set as a percentage, for example, 5 percent or 10 percent of the coverage amount rather than fixed dollar amounts (higher deductibles are also available). These deductibles are separate from your basic homeowner's policy . Earthquake insurance can be quite inexpensive. Contact your insurance agent or company to find out what the costs would be for your home.