Flood insurance rates can be all over the board. Someone might have a rate of $450 in Birmingham Alabama then someone might have a rate of $2000 in Tuscaloosa Alabama.

So how much is too much for flood insurance in Alabama?

Well before we can really answer that question we need to look at some factors that can impact flood insurance in Alabama.

  1. Elevation
  2. Foundation
  3. Type of Coverage

So lets take a brief look at some things above that can impact flood insurance in places like Tuscaloosa, Pell City, Demopolis, Huntsville, and Birmingham Alabama.

Elevation plays a major role in flood insurance rates. As you can see with the photo below. The further your property is below the base flood elevation the higher your flood insurance premiums can be.

So the rate for a property that is negative -1 foot and a property that is -3 feet could be hundreds of dollars.

Now lets look at foundation types. Your foundation type could play a major role on your flood insurance premiums. Alabama homes are known for having basements which could cause many homes to have a more negative number on their elevation.

Homes with above grade crawlspaces could have an advantage if they have flood vents installed properly. If these things are down properly this may not count as your lowest rated floor. So while the elevation of the crawlspace might be -1 but the next floor is +2 this could serve as a great benefit to the premiums on a flood insurance policy.

Lets look at the 3rd factor which is the type of coverage. This could go a few ways whether you are using the property for commercial or residential use. Then there is the factor if it is considered to be residential or a non residential building.

Remember in order for a commercial property to be considered residential 75% of the living space has to be used for residential purposes.

As you can see there can be alot of different factors.

So lets get back to the question how much is too much for flood insurance in Alabama?

It depends if we are talking about the National Flood Insurance Program or a private flood insurance policy in Alabama. While all the rates with the National Flood Insurance Program should be the same many times lack of knowledge on the insurance agents part could cause you to see a difference.

On the private flood insurance side each carrier sets their rates based on the underwriting factors they use to insure a property.

These can be different from FEMA for example some companies will not insure properties in the 20 year flood plain or properties that are in the flood way.

Want to know what a floodway is?


So at the end of the day whether you decide to go with the National Flood Insurance Program or a private flood insurance policy its all about what your budget is and what you feel comfortable paying each year. Its also important to understand that these rates can go up from year to year.

So if you have further questions about flood insurance rates in Alabama then make sure to click here.

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

Remember we have an educational background in flood mitigation this means we can help you understand your flood insurance, flood risk, and mitigating your property long term.


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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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