Surprised by coastal insurance costs? Check them before due diligence ends
On the Crystal Coast, flood and wind coverage can change the math on a home. Get quotes early.
By Anna Powell Real Estate ·
The fix: Check the flood zone, ask for the elevation certificate, and get flood and wind quotes before your due diligence date, so the full cost of owning is clear while you can still walk away.
Why get insurance quotes during due diligence?
Because in North Carolina the due diligence period is when you can walk away and get your earnest money back. Once it ends, insurance cost is no longer a reason you can terminate without risking your earnest money.
Ask for quotes as soon as you’re under contract, or before you offer.
Do I need flood insurance on the coast?
If the home is in a FEMA high-risk flood zone and you have a federally backed mortgage, your lender will require it. Even outside those zones, many coastal owners buy it, because standard homeowners policies don’t cover flood.
Look up the property on the NC Flood Risk Information System and ask the seller for any elevation certificate and flood claim history.
What is the Beach Plan?
The NC Insurance Underwriting Association, often called the Beach Plan, provides wind and hail coverage in North Carolina’s beach and coastal areas when it isn’t available in the regular market.
Your insurance agent can tell you whether a property will need it and what it costs.
General information, not legal, tax, or insurance advice. Confirm details with your agent, attorney, lender, or insurer.