For a long time commercial property owners in Alabama have felt they only had one option for flood insurance. However over the last 15 years private flood insurance companies have made a major push.


For the longest time private flood insurance companies could not figure out a profitable that also gave them predictable models. As technology has developed these changes have started to push the private flood insurance industry in Alabama forward.

So is the National Flood Insurance Program still the best option for your Alabama commercial property?

Let's look at some changes coming to the National Flood insurance program. The first is rate increases up to 25% on non primary residence properties.


This could have a major impact on investors and investment properties.

It could also impact people like apartment building owners.


Some other changes scheduled to happen is NFIP Risk Rating 2.0.


Everyone is not sure about the overall total impact of this new program. However the closer you are to water it could have a major impact on your bottom line.

So with these changes coming it could significantly the pockets of investors. Before deciding if its still the best option we need to look at some coverages the National Flood Insurance Program does not offer.

As a Huntsville business owner one of the biggest exposures to you could be loss of income. What if you have a restaurant along the Tennessee River and it floods.


How would the restaurant stay open when it recovers from this disaster?

This is where loss of income can come into play. This can be a great benefit of private flood insurance in Alabama. The National Flood Insurance Program does not offer loss of income on its flood policies.

As the National Flood Insurance Program continues to increase prices it also has property owners in areas like Montgomery and Birmingham Alabama searching for a cheaper commercial flood insurance option.

So is commercial flood insurance cheaper in Alabama?

It depends on a lot of factors like the flood score, loss history, and location.

Its not unusual to get a commercial flood policy in areas like Huntsville or Birmingham Alabama that is 30-40% less.


However in areas of east Alabama like Gadsden, Oxford, and Anniston where losses have occurred in the past rates could be higher or they may not do a policy on the property at all.

It's important to understand what commercial flood insurance options are available in Alabama and when you can make the switch to private flood insurance.

If you want to learn more about this then click here and we can reach out to you.

You can also check out our YouTube channel where we do daily flood education videos or our podcast.

Remember we have an educational background in flood mitigation which means we are here to help you understand your flood insurance, flood risk, and mitigating your property long term.

Chris Greene


Chris Greene

President of The Flood Insurance Guru
M.S. in Emergency Management with a focus in Flood Mitigation


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