Floods occur frequently, often without warning. They represent the most common and costly natural disaster in the United States. Yet, many property owners do not realize that their insurance policies will not cover the damage.

Even just 1 inch of water in or under your home can cause thousands of dollars in damage. Regular homeowners insurance won’t cover that loss.

Through the National Flood Insurance Program (NFIP), you can buy insurance that pays for damage and loss from flooding. Flood insurance can include buildings, furnishings, and other contents of your home.

In some cases, homeowners may be required to maintain flood insurance, for instance, if you live in an area of high flood risk and you or a previous owner has received federal assistance for storm damage.

Cost and Coverage

Rates for flood insurance under the NFIP vary. Prices depend on your home’s location and elevation. Property in a flood zone, as determined by the Federal Emergency Management Agency (FEMA), is at higher risk, resulting in higher premiums.

You can purchase coverage for buildings, which includes your foundation, electrical and HVAC systems, and other property damage. You can also purchase contents coverage, which includes furniture and other personal belongings.

Having this coverage helps people recover after a storm. The NFIP also works to improve floodplain management to reduce the devastation caused by floods.

Q&A

For more information:

National Flood Insurance Program: 800-621-3362

FEMA Mapping and Insurance Exchange : 877-336-2627

FEMA Website (Flood Maps): https://www.fema.gov/flood-maps

Email: FEMA-FMIX@fema.dhs.gov

The NFIP is a federal government program administered by FEMA. The NFIP partners with more than 50 private insurance companies and the NFIP Direct to sell and service flood insurance policies.

Download our resource:

If you are elderly or disabled and own your home, you may qualify for a reduction of your property taxes.

To be eligible, you must be either 65 or older, or totally and permanently disabled. You also must own and live in your home, unless you are living elsewhere for medical reasons.

This reduction does not happen automatically. You will need to submit an application to your local tax office. Applications are accepted from January 1 to June 1 of each year. You can find the Application for Property Tax Relief online, or ask for a copy in your county tax office.

There are three possible exemptions you may receive:

Elderly or Disabled Exemption

• You must be either 65 or older, or totally and permanently disabled.
• Your income must be under a certain limit. For 2024, the limit is $36,700 annually.
• You will need to turn in information about your income. If you are disabled but not elderly, your doctor will also have to fill out a form.
• If you qualify for the exemption, the county will tax your property as if it were worth less than it really is. For tax calculation purposes, the county will either exclude the first $25,000 in value or will reduce the value by 50%, whichever lowers your bill more.

Disabled Veteran Exemption

• You must be a veteran with a totally and permanently service-connected disability, and who left the military under honorable conditions.
• Widows and widowers of disabled veterans also qualify, if you have not remarried.
• There are no income limits for this exemption.
• Your home will be taxed as if it were worth $45,000 less than it really is.

“Circuit Breaker” Tax Deferment

• This is an alternative to the Elderly and Disabled Exemption. You must be either 65 or older, or totally or permanently disabled.
• Under this exemption, your taxes can be calculated as a percentage of your income, rather than based on the value of the property.
  • For 2024, if your income is below $36,700, your taxes will be limited to 4% of your income.
  • If your income is between $36,700 and $55,050, your taxes will be limited to 5% of your income.
• Taxes above the limit will be a lien on the property that is forgiven after 3 years.

FEMA Applications

If you have been affected by a federally declared disaster, you may qualify for disaster assistance through FEMA’s Individuals and Households Program. You should apply to FEMA as soon after the disaster as possible, and generally, you must apply within 60 days of the disaster.

FEMA can provide money for home repairs; temporary rental assistance; medical, dental and funeral expenses; vehicle repair or replacement; repair or replacement of essential household items; and other essential expenses related to the disaster.

To apply for FEMA assistance, you can:

• Go to www.DisasterAssistance.gov
• Call 1-800-621-3362 or TTY 1-800-462-7585
• Apply in person at a FEMA Disaster Recovery Center

FEMA will send you a letter either approving or denying your request. If you are approved, FEMA will send you a letter explaining the purpose of the money. It is important that you only use FEMA money for its intended purpose. For instance, if FEMA’s letter explains that funding is intended for home repair, you should not spend it on rent or food. FEMA may provide you with money for more than one purpose at the same time.

You should save receipts showing how you spent the money for at least three years after you receive it. FEMA may ask you for proof that the money was spent as intended. If you receive money for home repair, but it is not enough to complete all repairs on your home, you should keep your receipts until all repairs are completed so that you can show proof of how you spent the FEMA money to any other organizations assisting you.

If you are unable to use the funding for the intended purpose, you should return it to FEMA. If you spend the money for another purpose, you may be required to repay FEMA in the future.

If FEMA approves you for rental assistance, you will receive two months’ rent upfront, which you may also use to pay a security deposit and your first month’s rent. If you need continuing rental assistance after that, you will need to turn in additional documentation to FEMA, including information about your income and expenses.

FEMA Home Repair Assistance

If your home was damaged by a major disaster, you may be eligible for repair assistance from FEMA. FEMA repair assistance is only intended to help you with basic repairs to make it safe to return to your home. FEMA is not intended to assist with all repairs or result in your home returning to its pre-disaster condition.

FEMA also expects that you will soon return to your home and take steps to prevent further damage. For instance, if you have a hole in your roof, FEMA expects that you will place a tarp over it to prevent interior damage to your home.

You may be eligible for home repair assistance if:

• You or a household member is a U.S. citizen, non‐citizen national, or qualified alien
• Your home is in a declared disaster area
• You own your home
• Your home is uninhabitable or inaccessible due to the disaster
• Your home is not covered by insurance, or your insurance does not cover all your damage
• You were occupying your home as your primary residence at the time of the disaster

You may NOT be eligible if:

• You have other, adequate, rent-free housing available
• You refused assistance from your insurance
• You were required to maintain flood insurance after a previous disaster, but did not do so

Common issues that can cause FEMA to deny a homeowner’s claim include proving ownership and proving that the disaster has caused so much damage to the home that it is not currently habitable.

If FEMA denies your application for assistance or does not grant you enough money for your needs, you have 60 days to appeal. You can appeal on your own, or Legal Aid NC or another attorney can help you with your appeal.

Additional Resources

Category	Name	Organization
Disaster Relief	FEMA Home Repair Assistance	Legal Aid of North Carolina
Disaster Relief	FEMA and Flood Insurance	Legal Aid of North Carolina
Disaster Relief	Duplication of benefits	Legal Aid of North Carolina

Download our resource

Tenant’s Right to End Lease

If your home is damaged to the point that it is not habitable, you have the right to terminate your lease. You must notify your landlord, in writing, within ten (10) days of the damage of your intent to terminate the lease, unless your lease provides otherwise, and pay rent through the date you end the lease. Please review your lease and contact Legal Aid of North Carolina if you have questions. (NCGS 42-12)

Landlord Don’t Have the Same Right

Nothing in NC law creates any special right for a landlord to terminate the lease before the end of the lease term due to damage from a natural disaster, unless the home has been destroyed in a fire. (NCGS 42-9) At the end of the lease period, your landlord must give notice to terminate your lease pursuant to the lease or law (NCGS 42-14), whichever notice period is greater. Remember to check your lease for the lease term and notice requirements; it is common for leases that had a one-year initial term to renew as “month-to-month,” which may only require a week’s notice to terminate.

If your home is condemned by a city or county housing inspector, you may be required to vacate your home. A landlord does not have the authority to decide that a home is uninhabitable.

Landlord’s Duty to Repair

If you continue to live in the home, the landlord is required to make repairs so the home is safe, decent and sanitary. The landlord must do this within a reasonable time. However, the repairs are only legally required if the landlord is aware of the damage. Make sure you inform the landlord about needed repairs right away, and that you keep a record of the date and your conversation. It is best to make your repair requests in writing, which may include handwritten, email, text message, or social media message. A landlord’s duty to provide fit and habitable housing is not waived simply because the damage was caused by a natural disaster. (NCGS 42-42)

If Your Home is Seriously Damaged

In general, North Carolina law requires tenants to continue paying rent even if the home is damaged, unless you have an agreement with your landlord or a court order. A tenant may be able to sue the landlord for rent paid beyond the value of the home in its current condition. For this reason, landlords and tenants should come to an agreement on reduced rent until the home is repaired. If a landlord continues to demand rent for a property that is seriously damaged, or during a time when the tenant is required to be out of the home for repairs, tenants may have legal claims. Please contact Legal Aid of North Carolina.

Personal Property

In general, your landlord is not responsible for damage to your belongings caused by the natural disaster. You should file a claim with your renters’ insurance and/or FEMA. You should also take pictures of all damaged property.

Download our resource

Scammers and fraudsters often target people after natural disasters. Real contractors or handymen may also accept your money and then fail to do the work. These tips can help you avoid losing money after a disaster.

It is best to…

• Ask for an official ID from anyone claiming to be from the government, power company or insurance company.
• Contact your insurance company first if your property has been damaged by a disaster. Some insurance companies require the adjuster’s approval before work can be done.
• Shop around and compare estimates for any major repairs. Legitimate contractors will also provide written estimates for home repairs.
• Avoid sharing personal information, such as social security numbers or bank account numbers, with anyone who contacts you first. If someone contacts you claiming to be from a government agency or organization, look up the number for that organization online and call to verify that the person is really an employee.
• Remember that you should not be asked to pay to file any disaster assistance applications.

When hiring a contractor…

• Beware of contractors who knock on your door offering services because they noticed your home is damaged or are already working in your area. This is a common tactic of scam artists.
• FEMA does not approve, endorse, certify, or recommend any contractors, individuals, or firms.
• Do not hire a contractor who does not have a physical address or refuses to show ID.
• Use a contractor who is backed by reliable references. The most reputable contractors have liability insurance, workers’ compensation and are bonded.
• Perform a quick Google search before hiring any contractor. Do they have a website? Have they scammed previous clients? Read any reviews.
• Get a copy of your contract in writing from the contractor that includes the work to be done and, ideally, a completion date.
• Check credentials with the North Carolina Licensing Board for General Contractors. Any contractor taking jobs costing $30,000 is required to be licensed in North Carolina.
• You may wish to request a copy of your contractor’s Certificate of Insurance before they begin work, to ensure that the contractor is legitimate and that you will be covered if the contractor causes any damage to your home.

When making a payment…

• Be cautious about paying contractors before they begin work. If possible, wait until the work is finished and you are satisfied before paying. Reputable contractors generally do not expect customers to pay the entire price upfront.
• Pay contractors by credit card if you can, so that you can request a chargeback from your credit card company if they fail to do the work or if the work is unsatisfactory.
• If you cannot pay by credit card, pay by check or get a written receipt from the contractor – anything to keep a paper trail proving your payments.

If you have been affected by a scam or fraud, you should contact the North Carolina Attorney General’s Office at 1-877-566-7226. Under many circumstances, scams and frauds are a crime. You may wish to contact local law enforcement. You can also contact an attorney to assist you. Call Legal Aid NC to learn if you qualify for free help.

Watch this video for additional information:

Download our resource:

Legal Aid of North Carolina’s Disaster Relief Project helps promote the longevity and professionalism of local long-term recovery work. Legal Aid attorneys assist groups with 501(c)(3) non-profit incorporation, draft of legal documents, and provide general guidance as the groups seek to navigate the disaster relief ecosystem. Our goal is to allow the groups to focus on what they do best: helping the community recover. 

If you are a long-term recovery or community group and would like to learn if we can assist you, call the Legal Aid helpline at 866-219-5262. 

Additional resources

Category	Name	Organization
Disaster Relief	How to Start a 501(c)(3) Nonprofit Organization in North Carolina	NC Center for Nonprofits
Disaster Relief	Legal Compliance Checklist for North Carolina Nonprofits	NC Center for Nonprofits
Disaster Relief	Toolkit for Building Organizational Resilience	NC Center for Nonprofits

Videos

The Basics of Nonprofit Formation