Most people are aware that flood insurance can be required on an existing home, but what about when it is being built? We want to talk about flood insurance for new construction homes in Birmingham Alabama.
First of all when a home is being built the builder carries an insurance policy called a builders risk. This covers the structure until they are done building it. Most people are aware of a home insurance builders risk policy but most are not aware of a flood insurance builders risk policy.
A flood insurance builders risk policy is going to provide some different coverages compared to what the traditional builders risk will cover. Generally coverages will be pretty limited on the flood insurance builders risk policy. The reason for this is many times the walls are not up yet or the structure is not secure because of this it can create additional flood exposure. As a result flood insurance for contents is not usually offered until the structure is complete. Another type of coverage that is not offered many times is additional living expenses or business loss of use. One reason is since no one is living in the home additional living expenses is not needed. This coverage is provided for temporary housing.
In the Birmingham Alabama area these types of policies are very popular in flood prone areas like Alabaster, Pelham, Hoover, Trussville and Vestavia. So as a builder or potential buyer its important to check with the local flood plain manager before building. One reason is if you know the type of flood zone you are in then you might be able to elevate the home to help get the flood zone changed. While this process would not be approved until the home is built its important to know this process to help property values and potential resale opportunities.
If you have questions about flood insurance in Birmingham Alabama or flood insurance on new construction homes make sure to subscribe to our YouTube Channel The Flood Insurance Guru or like our Facebook page where we do daily flood education videos. You can also visit our website Flood Insurance Guru or give us a call 205-451-4294.