August 2026 - Home and Auto Insurance

Living on the Coast? The Hurricane Insurance Myth We Hear Most

One of the most common insurance myths we hear from coastal homeowners is: “My homeowners policy covers flooding.” In most cases, that is not accurate.

Why Homeowners Insurance Usually Does Not Cover Flooding

Standard homeowners policies generally exclude damage caused by rising water, which is considered flood. Some policies may allow flood coverage to be added by endorsement, but many carriers in our coastal area do not offer that option on a standard homeowners policy.

For most homeowners, the best way to protect against flood damage is to purchase a separate flood insurance policy.

How Homeowners Insurance Typically Defines Flood

From a homeowners insurance standpoint, flood usually means water that comes from outside the home and rises from the ground up. This is often referred to as “rising water.”

How Flood Insurance Typically Defines Flood

Flood insurance commonly defines a flood as a general and temporary condition where rising water inundates either:

Two or more acres of normally dry land; or
Two or more properties, including the insured property.

This can include overflow of inland or tidal waters, heavy rain accumulation, storm surge, or mudflow.

If a Hurricane Causes Flooding, Will My Homeowners Policy Pay?

Not necessarily. This is another common misconception. Even if a named storm brings heavy rain or storm surge, the claim is still adjusted based on the cause of loss. If the damage is caused by rising water, it is treated as flood damage.

Because flood is typically excluded from a homeowners policy, that damage would not be covered unless flood coverage was specifically added by endorsement or protected through a separate flood insurance policy.

Bottom Line for Coastal Homeowners

If you live near the coast, do not assume your homeowners policy covers all hurricane-related damage. Wind, rain, and flood can be treated differently by insurance companies, so it is important to review your policy and consider separate flood coverage before storm season.

Submitted by- Mary Beth Morris

When it comes to insurance, misinformation can be costly. At Carolina Property Insurance, we regularly talk with clients who are surprised to learn that some of the most common insurance “facts” they’ve heard simply aren’t true.

Whether you live in Murrells Inlet, Myrtle Beach, Pawleys Island, Georgetown, or anywhere along the South Carolina coast, understanding what your policies actually cover can help you avoid unexpected gaps and better protect your family, home, vehicles, and business.

Let’s clear up a few common misconceptions.

Myth #1: Flood Insurance Is Only Needed in High-Risk Areas

This is one of the biggest misconceptions we see in coastal South Carolina.

Many flood claims occur outside of designated high-risk flood zones. And here’s an important reminder: standard homeowners insurance does not cover flood damage.

With our coastal weather, heavy rainfall, hurricanes, and tropical storms, flood insurance is worth considering regardless of your flood zone designation.

Myth #2: Older Cars Don’t Need Insurance Protection

While you may choose to adjust certain coverages as your vehicle ages, liability coverage is still essential and legally required in most situations.

If your vehicle is important to your daily life, dropping comprehensive or collision coverage could leave you facing significant out-of-pocket expenses after an accident, theft, or weather-related loss.

Myth #3: Homeowners Insurance Covers Everything You Own

Most homeowners policies include personal property coverage, but valuable items often have coverage limits.

Jewelry, firearms, collectibles, fine art, and expensive electronics may require additional protection to ensure they’re fully covered.

A quick policy review can help identify whether your valuables need special consideration.

Myth #4: Anyone Who Borrows Your Car Is Automatically Covered

In many cases, occasional drivers who have your permission to use the vehicle may be covered under your policy.

However, every policy is different. Coverage can be affected by excluded drivers, household members who aren’t listed, ride-sharing activities, or business use.

Before handing over your keys, it’s important to understand how your policy works.

Myth #5: My Savings Account Is Enough Protection

Even a healthy savings account can be quickly depleted by a major home loss, liability claim, or lawsuit.

Homeowners insurance doesn’t just protect your home—it can also help cover personal belongings, liability claims, and additional living expenses if your home becomes uninhabitable after a covered loss.

Myth #6: My Auto Policy Automatically Covers Rental Cars

Many personal auto policies provide some protection for rental vehicles used for personal travel, but coverage varies.

Before declining coverage offered by a rental company, it’s a good idea to review your policy and understand exactly what’s protected.

Myth #7: Credit Doesn’t Affect Insurance Rates

Many insurance companies use credit-based insurance scores as part of their rating process.

In some cases, improvements to your credit profile could help you qualify for better insurance rates. If your financial situation has changed, it may be worth revisiting your coverage options.

When Was the Last Time You Reviewed Your Insurance?

Life changes quickly, and your insurance should keep up.

A policy review is a smart idea if you’ve: ✅ Purchased a home or vehicle
✅ Renovated your property
✅ Added a driver to your household
✅ Started a business
✅ Improved your credit
✅ Experienced major life changes

Let Carolina Property Insurance Help

At Carolina Property Insurance, we’re committed to helping our clients understand their coverage—not just sell policies. Whether you need homeowners, flood, auto, condo, renters, boat, motorcycle, umbrella, or business insurance, our local team is here to answer questions and help you make informed decisions.

📞 Not sure if your coverage still fits your needs? Contact Carolina Property Insurance today for a complimentary policy review and let us help ensure you’re protected from the unexpected. 🏡🚗🌊💙