How do you insure a home on Oak Island, NC?
An island between the Atlantic and the Intracoastal Waterway, with wind, flood and dune rules to match.
Most Oak Island homes are insured with a homeowners or dwelling policy, a wind and hail policy when wind is excluded (often from the Beach Plan), and flood insurance. The island sits south of the Intracoastal Waterway, so every address on it is in the Beach Plan's beach area.
We are an independent insurance company with offices in Brunswick County and compare more than 100 insurance companies plus the Beach Plan. We look at elevation, distance to the ocean and how the house is used before we quote.
Coverage descriptions here are general. Forms, endorsements and availability vary by insurance company, and your own policy governs.
What an Oak Island home policy setup includes
Homeowners or dwelling policy. Covers the house, other structures, belongings and liability. Many companies write beach homes with wind and hail excluded, and rentals usually go on a dwelling or landlord form.
Wind and hail policy. Fills the gap when the homeowners policy excludes wind, often through the Beach Plan. It should match the homeowners policy on limits, dates and form. See wind insurance.
We always include wind and hail
Every home policy we place includes wind and hail. When the insurance company excludes wind, we write the wind coverage separately through the Beach Plan or another company, so you're never left without it.
Flood insurance. Covers rising water and storm surge, which homeowners and wind policies exclude. NFIP and private options are compared on our flood insurance guide.
Named storm deductible. Usually a percentage of the dwelling limit. At 2% on a $500,000 home, you pay the first $10,000 of a named storm wind claim.
Ordinance or law. Helps pay to rebuild to current elevation and wind code after a covered loss, which matters on older island homes.
Loss of use or fair rental value. Pays extra living costs, or lost rent on a rental, while the house is repaired after a covered loss.
Liability and umbrella. Renters, guests, pools, docks and golf carts add liability. An umbrella adds limits on top.
What it usually does not cover
- Flood and storm surge under a homeowners or wind policy
- Wind, if your homeowners policy excludes it and you have no wind policy
- The first dollars of a named storm claim, up to your percentage deductible
- Docks, piers and bulkheads under NFIP flood
- The land itself, including sand and lot lost to erosion
- Short-term rental use on a policy not written for it
Forms, endorsements and availability vary by insurance company. Your own policy governs.
Who this page is for
- Oceanfront and second row owners
- Owners of canal and soundside homes along the waterway
- Second home and vacation rental owners
- Year-round residents with a mortgage on the island
- Buyers closing on an Oak Island home
Oak Island rules and local facts
Beach area for the Beach Plan. The town describes the island as bounded by the Atlantic to the south and the Intracoastal Waterway to the north (Town of Oak Island). That places it in the Beach Plan's beach area, south and east of the inland waterway (NCIUA).
One foot of freeboard. Oak Island's flood ordinance sets the regulatory flood protection elevation at the base flood elevation plus one foot (Oak Island Code Sec. 18-553). The town also says a structure partly or fully in a V zone must be designed by a licensed design professional (Town of Oak Island).
150 mph wind design. The town states that all construction on the island must meet 150 mph wind-zone requirements (Town of Oak Island). Wind-rated construction and roof features can help qualify for mitigation credits.
CRS Class 6. Oak Island is a Class 6 community in FEMA's Community Rating System, listed with a 20% NFIP discount as of Oct. 1, 2026 (FEMA CRS list).
Hurricane Isaias, 2020. Isaias completely washed away Oak Island's primary dune in places, and the state estimated 178 of 191 affected oceanfront structures could not meet the minimum setback (NC DCM). The National Weather Service reported storm surge damaged or destroyed an estimated 75 to 100 vehicles on the island (NWS).
Beach nourishment. The town's 2025 to 2026 project placed about 1,955,000 cubic yards of sand (Town of Oak Island), and the state's 2025 study keeps Oak Island's oceanfront setback factor at the minimum of 2 (NC DCM).
Hurricane Hazel, 1954. In Long Beach, now part of Oak Island, only 5 of 357 buildings were left standing after Hazel (NWS).
Elevation certificates on file. The town keeps elevation certificates for most existing structures in its flood hazard areas, and notes homeowners insurance does not normally cover flooding (Town of Oak Island).
What drives the cost on Oak Island
Price depends on the house, not the zip code. These are the factors that move it:
- Oceanfront, second row, interior or soundfront location
- Lowest floor elevation compared with the required flood elevation
- Pilings, foundation type and breakaway walls below the home
- Roof age, shape and covering, and any FORTIFIED designation
- Window and door protection
- Dwelling limit based on the cost to rebuild on the island
- Named storm deductible percentage
- Primary home, second home or rental use
- Flood claim history and elevation certificate
We do not publish average prices. A licensed advisor quotes your actual situation across more than 100 insurance companies.
Common Questions
Is Oak Island in the Beach Plan's beach area?
Yes. The island lies south of the Intracoastal Waterway, which is the Beach Plan's beach area.
Do I need flood insurance on Oak Island?
Your lender must require it if the home is in a high-risk flood zone and the loan is federally backed. Even without a loan, storm surge is a flood claim, and homeowners and wind policies do not pay it.
What is the freeboard requirement on Oak Island?
Oak Island requires the lowest floor at the base flood elevation plus one foot. In V zones, the bottom of the lowest structural member must meet that height.
Does Oak Island get a flood insurance discount?
Oak Island is a Class 6 community in FEMA's Community Rating System, listed with a 20% NFIP discount. Private flood companies set their own prices.
What did Hurricane Isaias do to Oak Island?
Isaias in 2020 washed away the primary dune in places and pushed storm surge onto streets and vehicles. That is why flood and wind deductibles matter here.
Does homeowners insurance cover hurricane damage on Oak Island?
It covers wind only if wind is on the homeowners policy or a separate wind policy. Storm surge needs a flood policy. Every home policy we place includes wind and hail, on the homeowners policy or on a separate wind policy.
Can I get insurance on an Oak Island vacation rental?
Yes. Rentals usually go on a dwelling or landlord form with fair rental value, plus wind and flood.
Do Oak Island homes have to meet a wind code?
Yes. The town says all construction must meet 150 mph wind-zone requirements.
How much is home insurance on Oak Island?
It depends on elevation, distance to the ocean, roof, deductible and use. We quote the actual house rather than an average.
The Bottom Line
- Tell us before you close, so homeowners, wind and flood start the same day.
- Send your elevation certificate; the town may already have it on file.
- Tell us if you rent the house, even a few weeks a year.
- Check your named storm deductible before hurricane season.
- Tell us before you re-roof, so the new roof can qualify for credits.
Forms, endorsements and availability vary by insurance company. Your own policy governs.
Sizemore Insurance is an independent insurance company founded in North Carolina in 1977. Tell us what you need to protect, and a licensed advisor will compare more than 100 insurance companies to find the coverage that fits. Insurance made just for you.
Sources: Town of Oak Island, Residents and Visitors; NC Insurance Underwriting Association, coverages and territories; Town of Oak Island Code, Ch. 18 Art. IV, Flood Damage Prevention; Town of Oak Island, Flood Information; FEMA, CRS Eligible Communities (effective Oct. 1, 2026); NC DCM, CRC-20-24 Oak Island unvegetated beach memo (Aug. 27, 2020); National Weather Service Wilmington, Hurricane Isaias (2020); Town of Oak Island, Beach Nourishment and Preservation; NC DCM, 2025 Oceanfront Setback Factors update study; National Weather Service Newport/Morehead City, Hurricane Hazel (1954).
Forms, exclusions, endorsements, and availability vary by insurance company. This page is general information, not a policy or legal advice. Review your own policy or talk to your advisor.