Here you’ll find answers to some of our most frequently asked questions – about both the requirements and flood insurance coverages that are available in Alabama. We aim to not only provide you the best flood insurance options, but also help educate you on what flood insurance is, why you need it, and how Alabama Flood Insurance can help.

What does flood insurance cover?
Flood insurance covers physical damage to your property and possessions
(up to a maximum limit based on your policy). Please use the attached document as a guide
for what is and is not covered so you can better understand your flood insurance policy.
Why is my mortgage lender requiring
me to buy flood insurance?
It is mandatory for homes and businesses in high-risk flood areas with mortgages or loans from federally regulated lenders to have flood insurance. While flood insurance is not federally required for properties in a moderate- to low-risk flood area (or if you own your home outright), your lender may still require you to have flood insurance and is still strongly recommended due to the amount of low- to moderate-risk area claims.
Am I eligible for flood insurance
for my property?
Everyone is eligible; it just depends on what zone and community you live in to qualify for the National Flood Insurance Program (NFIP) coverage. If you don’t live in an area that participates with the NFIP, you could still be eligible through a private carrier, which Alabama Flood Insurance has direct access to.
Can I buy flood insurance online?

Yes and no.
You can obtain a quote online, but will need to contact your agent to bind coverage. Alabama Flood Insurance offers a quick (less than 15 minutes) online quoting process. Our online process provides your flood zone determination as well as your estimated yearly premium if you’re in flood zones B, C, or X. You will, however, still need to speak with one of our flood agents to bind the policy as additional information will be required (as with any insurance provider).
Keep in mind you can only purchase flood insurance through an insurance agent;
you cannot buy it directly from the National Flood Insurance Program (NFIP). Since Alabama Flood Insurance is a general agent, we can easily process all flood insurance policies through the NFIP or through one of our many private carriers.

If a flood affects my home, won’t disaster
assistance cover my property?
Only if the President declares a disaster – and that doesn’t always happen. However, Federal assistance is not insurance – it is a low-interest loan. FEMA gives a great example to better understand how this loan works. Borrow $50,000 at 4% to repair your property and over the next 30 years, you’ll pay about $240 a month in addition to your mortgage to pay back the loan.
Do I need flood insurance if I don’t
live in a high-risk zone.
If you live in a low-risk flood zone, flood insurance may not be required. However, with about 20% of flood insurance claims coming from a moderate- to low-risk areas, we strongly encourage you to carry flood insurance. In fact, you may qualify for the Preferred Risk Policy (a lower-cost flood insurance policy) that provides building plus contents coverage starting at just over $100 per year.
What if my home and content value is more
than what the NFIP policy offers?
Many private insurance companies offer enhanced or excess flood protection, which provides additional coverage above what the NFIP offers. For more information, contact us – Alabama Flood Insurance agents are standing by and would be happy to discuss your options to make sure you’re protected.
Is flood insurance expensive?
The cost of flood insurance varies by location and is determined by multiple factors such as flood zone (are you in a low-, moderate-, or high-risk area) of the home or building, coverage type desired(building and contents), and the amount of coverage requested.
In 2014 on average, the cost of a flood insurance policy for $100,000 in premium coverage on a house located in a high-risk flood zone in Birmingham, Alabama was about $800 per year. However, due to recent flood insurance reform, this amount may not reflect current flood insurance costs.
In low- to moderate-risk flood zones, where the risk of flooding is still moderately high, lower flood insurance rate options are available.
Does my homeowner insurance policy cover flooding?
Most homeowners’ insurance policies only cover
damage caused by threats such as fire, lightning strikes, hail, windstorms, theft or vandalism. Though there are other policies that cover additional risks, floods and earthquakes are usually discounted from homeowners’ insurance policies.
What is considered a flood?
A flood is when two or more acres or two or more properties are affected by water from the ground up – usually due to heavy rain, extreme coastal conditions or river overflow. Though river floodplains and coastal areas are the most susceptible, it is possible for flooding to occur in areas with unusually long periods of heavy precipitation – typically in dry land locations. This is why it is still important to carry flood insurance even in low- to moderate-risk flood zones.
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