Flood Insurance in Cullman Alabama:

Everything You Need to Know

Cullman, Alabama is no stranger to flooding. Located in the northern part of the state, the area is prone to heavy rainfall and flash floods. With the potential for damage to homes and businesses, flood insurance is an important consideration for those living in the area.

Flood insurance is a type of insurance policy that covers damage caused by flooding. Unlike standard homeowners insurance policies, flood insurance is not typically included and must be purchased separately. In Cullman, flood insurance is available through the National Flood Insurance Program (NFIP) and private insurance companies. It is important to note that there is typically a 30-day waiting period before the policy goes into effect, so it is important to plan ahead.

 

Understanding Flood Insurance in Alabama

Flood insurance is a type of insurance that protects homeowners and renters from losses due to flood damage. It is important to understand that standard homeowners insurance policies do not cover damage caused by floods. Flood insurance is a separate policy that must be purchased through the National Flood Insurance Program (NFIP) or a private insurer.

In Cullman, Alabama, flood insurance is particularly important due to the city's location near the banks of the Mulberry Fork of the Black Warrior River. The area is prone to flooding, and homeowners and renters should be aware of their options for flood insurance.

2023 Flood Insurance in Cullman, Alabama: Protect Your Home from Flooding

The NFIP offers flood insurance policies for homeowners, renters, and businesses in Cullman. These policies provide coverage for damage to the structure of the building as well as its contents. It is important to note that there is a 30-day waiting period before coverage begins, so it is important to purchase flood insurance well in advance of any potential flooding.

Flood insurance premiums are based on a number of factors, including the property's location, the type of coverage needed, and the value of the property and its contents. Homeowners and renters should work with their insurance agents to determine the appropriate coverage and premium for their specific situation.

 

In summary, flood insurance is a crucial component of protecting your home or rental property in Cullman, Alabama. Homeowners and renters should be aware of their options for flood insurance, work with their insurance agent to determine the appropriate coverage and purchase flood insurance well in advance of any potential flooding.

Why Flood Insurance in Cullman Alabama?

Cullman, Alabama is a beautiful city that is located in the northern part of the state near Smith Lake. It is known for its rich history, beautiful scenery, and friendly residents. However, like many other cities in the United States, Cullman is also prone to flooding. This is why flood insurance is so important for homeowners and business owners in the area.

2023 Flood Insurance in Cullman, Alabama: Protect Your Home from Flooding

Flood insurance is a type of insurance that is designed to protect property owners in the event of a flood. It covers damage to buildings and personal property caused by flooding. This can include damage from storm surges, heavy rainfall, and other types of flooding.

In Cullman, flooding is a common occurrence and recent flooding events in 2023 have left many people in a financial hole. The city is located near several rivers and creeks, which can easily overflow during heavy rainstorms. In addition, the city is located in a low-lying area, which makes it more susceptible to flooding.

2023 Flood Insurance in Cullman, Alabama: Protect Your Home from Flooding

Without flood insurance, property owners in Cullman could face significant financial losses if their property is damaged by flooding. Flood damage can be expensive to repair, and it can take a long time to recover from the damage. This is why flood insurance is so important for property owners in the area.

In conclusion, if you own property in Cullman, Alabama, it is important to consider purchasing flood insurance. This type of insurance can provide you with peace of mind and financial protection in the event of a flood.

Coverage of Flood Insurance for Homeowners

Flood insurance provides coverage for damages caused by flooding, which is not covered under standard homeowners insurance policies. In Cullman, Alabama, flood insurance is particularly important due to the area's susceptibility to flash floods and heavy rains.

2023 Flood Insurance in Cullman, Alabama: Protect Your Home from Flooding

Building Property Coverage

Building property coverage or structure of your house is designed to protect the physical structure of a home or business from flood damage. This includes the foundation, walls, electrical and plumbing systems, and built-in appliances. The coverage limit for building property is $250,000 for residential properties and $500,000 for commercial properties.

2023 Flood Insurance in Cullman, Alabama: Protect Your Home from Flooding

It's important to note that flood insurance does not cover every type of water damage. For example, if water damage is caused by a leaky pipe, it would not be covered by flood insurance. However, if the water damage is caused by a flood, it would be covered under the building property coverage.

Personal Property Coverage

Personal property coverage is designed to protect the contents of a home or business from flood damage. This includes furniture, clothing, electronics, and other personal belongings. The coverage limit for personal property is $100,000 for residential properties and $500,000 for commercial properties.

2023 Flood Insurance in Cullman, Alabama: Protect Your Home from Flooding

It's important to keep an inventory of personal belongings in case of a flood. This will make it easier to file a claim and ensure that all damaged items are accounted for. Additionally, some high-value items such as artwork or jewelry may require additional coverage beyond the standard personal property limit.

See If Flood Insurance is Required

Overall, flood insurance can provide peace of mind and financial protection in the event of a flood. It's important for residents and business owners in Cullman, Alabama to consider purchasing flood insurance to protect their property and belongings.

How to Buy Flood Insurance in Cullman AL

 

Where to buy flood insurance in Cullman Alabama

Flood insurance can generally be purchased through any property and casualty insurance agent in the Cullman Alabama area. However, it is recommended that you speak to an independent insurance agency that offers the National Flood Insurance Program and at least 3 different private flood insurance options. You want to ask them the following things

  • What is my flood risk
  • What is my flood zone
  • How much flood insurance coverage do I need
  • What is the average cost of flood insurance in Cullman Al

In case they can't answer these questions for you we are going to give you the answers below.

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Private Insurance Companies 

When looking to buy flood insurance in Cullman AL, individuals have the option to purchase coverage through private insurance companies. These companies offer policies that are separate from the National Flood Insurance Program (NFIP) and may provide additional coverage options.

2023 Flood Insurance in Cullman, Alabama: Protect Your Home from Flooding

To purchase flood insurance through a private insurance company, individuals can contact their local insurance agent or do research online to find a company that offers flood insurance in their area. It is important to compare coverage options and prices from multiple companies to ensure that the policy meets individual needs and budgets.

Some private insurance companies may require a flood zone determination to be conducted before issuing a policy. This determination will assess the risk of flooding in the area and may impact the cost of the policy.

Flood Insurance Guru | Private Flood Course

National Flood Insurance Program

The National Flood Insurance Program (NFIP) is a federal program that provides flood insurance to homeowners, renters, and business owners in participating communities. To purchase flood insurance through the NFIP, individuals can contact their insurance agent or visit the NFIP website.

The NFIP offers both building and content coverage, and NFIP policies can be purchased separately or as a package. The cost of the policy will depend on factors such as the property's flood zone, the amount of coverage needed, and the deductible chosen.

2023 Flood Insurance in Cullman, Alabama: Protect Your Home from Flooding

It is important to note that there is typically a 30-day waiting period before a flood insurance policy becomes effective. This means that individuals should purchase flood insurance before a flood is imminent to ensure that they are adequately protected.

In conclusion, whether purchasing flood insurance through a private insurance company or the National Flood Insurance Program, individuals in Cullman AL should carefully consider their options and choose a policy that provides adequate coverage for their needs.

Flood Insurance Claims Process

Filing a flood insurance claim can be a daunting task, but it is essential to ensure timely reimbursement for damages and proper payout caused by flooding. Here is a brief overview of the flood insurance claims process in Cullman, Alabama:

  1. Report the Flood Damage: The first step in filing a flood insurance claim is to report the damage to the insurance company. The policyholder should contact their insurance company as soon as possible to report the damage. In most situations, you have 60 days to provide proof of loss letter. The insurance company will assign an adjuster to assess the damage and determine the amount of compensation and repair costs.

  2. Document the Damage: The policyholder should document the damage by taking photographs or videos of the affected property. They should also make a list of damaged items and their estimated value. This information will be required when filing the claim and help you feel confident that you pick the right coverages you need. If you have NFIP coverage payouts may vary depending on the amount of coverage.

  3. Meet with the Adjuster: The adjuster will schedule a meeting with the policyholder to assess the damage in person. During the meeting, the adjuster will inspect the property and document the damage. The policyholder should provide any additional information or documentation that may be required.

  4. Receive the Claim Payment: Once the adjuster has completed the assessment, the insurance company will determine the amount of compensation and issue the payment. The payment may be made in one lump sum or in installments, depending on the policy terms.

It is important to note that flood insurance claims can take time to process, especially in the event of a widespread flood. The policyholder should stay in contact with their insurance company and provide any additional information or documentation that may be required. It is also important to note that NFIP coverage does not include living expenses.

Flood Insurance Rates in Cullman, AL

Flood insurance rates in Cullman AL can be cost-effective depending on several factors. So what is the cost of flood insurance? Well, let's look at The National Flood Insurance Program (NFIP) which sets the rates for flood insurance policies. The rates are determined based on the property location, flood risk, and the type of coverage selected.

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For properties located in high-risk flood zones, the flood insurance rates in Cullman AL are typically higher than those located in low-risk zones. The NFIP uses flood maps to determine the flood risk of a property. The maps show the likelihood of flooding in a particular area. Property owners can use the maps to determine their flood risk and the corresponding flood insurance rates.

Find My Flood Risk & Flood Rate

The type of coverage selected also affects the flood insurance rates in Cullman AL. The NFIP offers two types of coverage: building property coverage and personal property coverage. Building property coverage protects the physical structure of the building, while personal property coverage protects the contents of the building.

The following table shows the average flood insurance rates in Cullman AL for building property coverage and personal property coverage:

Type of Coverage Average Annual Premium
Building Property $1,000 - $3,000
Personal Property $100 - $300

It is important to note that flood insurance rates in Cullman AL can vary significantly from the average rates listed above. Property owners should contact an insurance agent to get a personalized quote based on their specific property location, flood risk, and coverage needs.

2023 Flood Insurance in Cullman, Alabama: Protect Your Home from Flooding

Private Flood Insurance in Cullman Alabama

Private flood insurance markets in the Smith Lake area or even the Athens or Huntsville Alabama area range based on the flood risk of the property. You may get one rate in a low-risk flood zone and a different rate in a high-risk flood zone or moderate-risk area.

Flood insurance rates with private flood insurance may range from $300 a year to $3000 a year. Is private flood insurance the best flood insurance in Cullman Alabama?

2023 Flood Insurance in Cullman, Alabama: Protect Your Home from Flooding

It depends on the coverage and pricing you can get. You want to make sure to look at the policy jacket this is the full policy and look at any exclusions. Many flood insurance policies only cover surface water and exclude coverages for basements many times.

You should definitely at least consider flood insurance from a private flood insurance company as many homeowners are unaware that it is an option.

2023 Flood Insurance in Cullman, Alabama: Protect Your Home from Flooding

Get the flood insurance quotes from 3 different private flood insurance companies and compare rates with the National Flood Insurance Program. Remember all flood insurance policies are done on an annual cost basis. This means things like 6-month rates on auto insurance do not exist.

5 Tips When Purchasing Flood Insurance

Flood Zones in Cullman AL

Cullman County is located in North Alabama and has a diverse topography that includes mountains, valleys, and rivers. Due to its location, Cullman is vulnerable to flooding caused by heavy rainfall, flash floods, and riverine flooding.

The Federal Emergency Management Agency (FEMA) has designated flood zones in Cullman County based on the likelihood and severity of flooding. Property owners in these zones are required to purchase flood insurance if they have a federally-backed mortgage.

2023 Flood Insurance in Cullman, Alabama: Protect Your Home from Flooding

The flood zones in Cullman County are classified as A, AE, AH, AO, and X. The A, AE, AH, and AO zones are considered high-risk areas and are more likely to experience flooding. The X zone is considered low-risk, but property owners are still encouraged to purchase flood insurance.

The following table provides a summary of the flood zones in Cullman County:

Flood Zone Description
A Areas with a 1% annual chance of flooding and a 26% chance of flooding over the life of a 30-year mortgage
AE Areas with a 1% annual chance of flooding and a 26% chance of flooding over the life of a 30-year mortgage. These areas also have additional hazards associated with wave action
AH Areas with a 1% annual chance of shallow flooding (depths of 1-3 feet) and a 26% chance of flooding over the life of a 30-year mortgage
AO Areas with a 1% annual chance of shallow flooding (depths of 1-3 feet) and a 26% chance of flooding over the life of a 30-year mortgage. These areas also have additional hazards associated with sheet flow
X Areas with a minimal flood risk

Property owners in high-risk areas are required to purchase flood insurance, but those in low-risk areas are not. However, it is important to note that flooding can occur in any area, and property owners are encouraged to purchase flood insurance even if they are not required to.

2023 Flood Insurance in Cullman, Alabama: Protect Your Home from Flooding

In conclusion, Cullman County has several flood zones designated by FEMA based on the likelihood and severity of flooding. Property owners in high-risk areas are required to purchase flood insurance, while those in low-risk areas are not. It is important for property owners to be aware of their flood zone and to consider purchasing flood insurance to protect their property from potential flood damage.

FAQs on Flood Insurance in Cullman AL

Floods are a common occurrence in Cullman AL, and it is important to have flood insurance to protect your property. Here are some frequently asked questions about flood insurance in Cullman AL:

  • What is flood insurance? Flood insurance is a type of insurance that protects your property and belongings from damage caused by flooding. It is not included in standard homeowners or renters insurance policies and must be purchased separately.

  • Do I need flood insurance? If you live in a flood-prone area in Cullman AL, it is highly recommended to have flood insurance. Even if you do not live in a high-risk area, floods can still occur and cause significant damage.

  • How much does flood insurance cost? The cost of flood insurance varies depending on several factors, including the level of risk in your area, the value of your property, and the type of coverage you choose. It is best to contact a licensed insurance agent to get a quote.

    2023 Flood Insurance in Cullman, Alabama: Protect Your Home from Flooding
  • What does flood insurance cover? Flood insurance covers damage to your property and belongings caused by flooding. This includes damage to the structure of your home, electrical and plumbing systems, appliances, furniture, and personal belongings. It may also cover the cost of temporary lodging if your home is uninhabitable due to flood damage.

  • What does flood insurance not cover? Flood insurance does not cover damage caused by other types of water damage, such as a burst pipe or sewer backup. It also does not cover damage to your car, as that is covered under a separate auto insurance policy.

  • How do I purchase flood insurance? Flood insurance can be purchased through a licensed insurance agent. It is important to purchase flood insurance before a flood occurs, as there is typically a 30-day waiting period before coverage takes effect.

It is important to have flood insurance to protect your property in Cullman AL. Contact a licensed insurance agent to learn more about your options for flood insurance coverage.

Conclusion

In conclusion, flood insurance is an important consideration for homeowners and business owners in Cullman, Alabama. While it is not required by law, it is highly recommended to protect against the financial impact of flood damage.

Homeowners should consider the risk of flooding in their area and evaluate the cost of flood insurance compared to the potential cost of flood damage. Business owners should also consider the impact of flood damage on their operations and finances, and ensure that their insurance policy covers any potential losses.

2023 Flood Insurance in Cullman, Alabama: Protect Your Home from Flooding

It is important to note that flood insurance policies have specific limitations and exclusions, and may not cover all types of flood damage. Homeowners and business owners should carefully review their policies and understand the coverage and limitations.

Overall, flood insurance is a valuable investment for those living or operating a business in flood-prone areas such as Cullman, Alabama. It provides peace of mind and financial protection in the event of a flood and can help to minimize the impact of flood damage on individuals and businesses.

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Better watch out and bring out your umbrella with you if you're in Alabama. This may get rough soon!

Alabama is expected to receive rain starting Thursday, February 3rd, and until Friday, February 4th. This is pretty normal if you'd think about it however there are some flooding concerns that may be seen during this time.

Alabama Faces a Potential Flood Event in 2022

In today's blog, we want to talk about this weather event in Alabama and the flood concerns arising from it.

Heavy Rain Brings Higher Waters

Alabama is up in arms as weather forecasts expect heavy rainfall to drop on the state. This heavy rainfall is expected to be averaging 2 to 4 inches of rain and will persist from Thursday to Friday as reported by the National Weather Service (NWS). Flood watches are being sent out already since we are already expecting 3 to 6 inches of heavy rain getting dumped on Alabama just for the night of February 3rd. This means that flash flooding has an up to 10% chance of happening across the state.

This event is also expected to have some major storms as seen by the National Oceanic and Atmospheric Administration (NOAA) which places the south and south-central parts of the state at a marginal risk for severe weather this Thursday.

Alabama Faces a Potential Flood Event in 2022Photo courtesy of NOAA

This puts cities Mobile, Montgomery, Greenville, and Tuscaloosa at a high chance of facing an isolated major storm in the next two days. These types of storms usually create the biggest concerns are damaging wind gusts, which could take down trees and knock out power, and tornadoes.

After Friday (February 4th), the rain will begin to move out however it doesn't really mean that everything ends there since there are chances of additional rain happening during the weekends because the cold air will be rushing behind.

Flood Concerns

One of the biggest concerns that we should be aware of is that this type of weather event will surely create big flood threats and increase the overall flood risk for the whole state in the next two days.

This ranges from what we call a pluvial flood, where collected water has nowhere else to go so it starts to pile up and inundate the area. This isn't really impossible considering that we still haven't moved out of the winter season. During this time, we expect the ground to be oversaturated which generally means that it won't be able to take in as much water as it should.

Another reason why flooding may occur from a life-threatening storm surge as water levels rise due to the precipitation. This is most likely to happen in coastal Alabama like Mobile City. Generally, this means that we might see a cocktail of floods as all three types may occur during this weather event: pluvial, fluvial, and coastal flooding.

Alabama Faces a Potential Flood Event in 2022

Fluvial flooding is only different from pluvial because the source of the floods comes from a water source like a river, lake, pond, creek, and such. Generally, this type of flood has a very strong flow to it and most of the time can easily damage properties along its path.

Other than these flood concerns, when that rain starts to happen, it's most likely that roads and bridges are going to be slippier than ever. This is why we always remind people to not drive into standing water or flood, or even during a rain event like this if it's not really necessary. We don't want to be dark and grim, but most of the casualties and injuries that happen in times like this are located and involve roads.

Why Flood Insurance is Important

When it comes to floods, most people would say that they wouldn't want to leave their properties unattended because something might happen to them. This same thinking causes a lot of trouble for these property owners when water starts to inundate the property.

Flood insurance can really help you cover for this flood damage and flood loss that may occur during a time like this. More importantly, you get peace of mind that you will still have a home to go back to even after a flood.

You have two options when it comes to flood insurance in Alabama: the federal-backed National Flood Insurance Program (NFIP) and its new Risk Rating 2.0, and Private Flood Insurance. Let's talk about these two.

NFIP

The federal flood insurance is gearing towards a fingerprint of flood risk for properties that get a policy from them since rates will be based on the individual flood risk. Although this makes it more affordable for flood insurance coming from FEMA, this may still bring an increase to rates for some property owners.

This type of change makes them a big contender to take the spot when you ask people where best to get flood insurance however it's integral to point out that other than how you're going to be rated, some things never change with the National Flood Insurance Program (NFIP) flood insurance.

When it comes to coverage, we're still talking about the same $250,000 maximum on dwelling or building coverage and $100,000 maximum when it comes to contents

Other than these, these are all that the federal government can offer when it comes to flood insurance even with the Risk Rating 2.0 update. Here's a quick breakdown of the NFIP 2.0 card compared to the current version we have at the time of writing:

Alabama Faces a Potential Flood Event in 2022

Private Flood

Private flood insurance has made a big push in the last 15 years. There have been a lot of changes in the last 5 years that allow private flood insurance to be a great flood insurance option for many property owners. Let's look at exactly what private flood insurance is.

For many years the only option for many property owners was the National Flood Insurance Program (NFIP). There were many limitations with this program like wait periods, coverage amounts, and cost of the policy.

It's important to understand not all private flood insurance options are the same. There are admitted and non-admitted carriers in the private market. Each one of these types of policies has different requirements they follow.

The private flood insurance market still offers flood coverage that doesn't really have any maximum amount. You can definitely still get more than $250,000. Even when it comes to personal items or contents coverage, you can definitely go more than $100,000 for flood damage. That coverage also comes with the loss of useadditional living expenses, and/or replacement costs.

We've also seen a lot of homeowners coming to us for flood insurance and were able to get it in just a few days. The maximum waiting period for a flood policy from a private insurance company is only 14 days.

Alabama Faces a Potential Flood Event in 2022

What This Means for the Future

Considering that both Risk Rating 2.0 and private flood insurance companies base flood insurance rates on flood risks, this type of weather event can really add up to the things that increase your risk of flooding. This can also be a hard-hitter when it comes to flood mitigation since more risks require more efforts to lessen the flood damage on your property.

If Alabama were to get dumped by heavy rainfall more frequently, this could mean that flood insurance rates will also skyrocket in most areas especially when such rain event causes huge flooding in the area.

We're starting the Month of Arts and Hearts with such a concerning scenario, so we hope that you stay safe during this time. If you really don't need to head out, please stay at home and follow your local government's guidelines on what to do when flooding starts to happen. The thing is flooding can happen anytime.

So if you've got questions on flood insurance in Alabama, what this rain event could mean for your flood risk score, or anything related to flood insurance, click below to access our Flood Learning Center.

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If you want to speak to us about your flood concerns, click below to contact us:

The Flood Insurance Guru | 2054514294

Remember, we have an educational background on flood mitigation which lets us help you understand flood risks, flood insurance, and protecting your property long-term.

Business is booming as some would say to the real estate market in Alabama. Despite being in a pandemic, somehow real estate was able to keep up with the times. 2021 was one of these proofs as Alabama had an increase of 3.9% year-over-year (Y/Y) in real estate sales during the month of August.

Alabama Real Estate: Buying Properties in a Flood Zone

It's no secret that some of these listings sit on a high-risk flood zone, so today, we want to talk about things every realtor needs to know when it comes to buying and selling a property that's in a flood zone.

This is part one of a two-parter blog and for this article, we want to focus on the buyer's side of real estate.

Loan Types & Flood Insurance Options

When it comes to closing a house, most buyers don't really have the luxury to pay it all in cash. This is why loans exist to help ease up the expenses in maintaining a roof above your head. If you're reading this blog, you're most likely to be familiar with mortgages and how it works.

What you might not know is that mortgages and loan types can actually impact your flood insurance too.

You see, depending on the type of loan you have for your property, you'll get different options when it comes to flood insurance. We have different types of loans and we actually covered this topic on our podcast blog, but to further understand the situation especially after the Risk Rating 2.0 update with federal flood insurance let's give an example.

Alabama Real Estate: Buying Properties in a Flood Zone

If you have the Federal Housing Administration or FHA loan, you won't be able to get flood insurance through any private insurance carrier because your bank won't accept it. This only means that your only flood insurance source will be from the federal side which is through the Federal Emergency Management Agency (FEMA) and the National Flood Insurance Program (NFIP).

There was a time that if you have a loan that's under the government such as an FHA loan, Veteran Affairs (VA) loan, or United States Urban Development Administration (USDA) loan, the only option you have is through the NFIP when it comes to flood insurance.

This meant those people with conventional loans are the only ones who can get flood insurance through private companies before. This was changed way back and only homeowners with an FHA loan are required to get flood insurance through FEMA and the NFIP.

So this is important to keep in mind. Consider first what loan type you have in order to get a proper expectation on where you can get flood insurance from.

Flood Insurance Claims

Another thing you want to consider when buying a property is its history of flooding and flood claims history. This way you get to have an immediate idea of the flood risks or flood hazards that the house might face.

It's also important to note that when it comes to flood insurance, you might not get a policy from the private insurance companies once they detect that the previous owner or the property is prone to flooding.

It's important to keep in mind that flood claims aren't like medical insurance claims where it goes wherever you go. What we mean by this is that when you file a flood claim on the property, regardless of who the owner is, the claims will stay with the property basically for its entire life.

Alabama Real Estate: Buying Properties in a Flood Zone

When it comes to the federal side, however, there won't be a refusal to provide flood insurance to properties like this however with the Risk Rating 2.0, having multiple claims on a property is sure to impact the overall costs of your flood insurance premiums with that house. This is what's called the claim variable.

For this one, it's crucial to always know the flood and claims history of the property. This way you protect yourself from unwanted non-renewals as per the carrier's discretion or expensive flood insurance rates.

Flood Insurance Premiums

One of the biggest questions asked by a potential buyer of a house concerns flood insurance rates. This opens the door for asking, "will my premiums skyrocket after I buy the property?"

Alabama Real Estate: Buying Properties in a Flood Zone

The thing about flood insurance premiums is that the rate is generally guaranteed only for 12 months. This means that after that, you may see some changes like a minor increase or decrease. This is considering that you weren't flooded. On the other hand, if the property was recently subjected to flood damage and there was a claim filed for it, the flood insurance premium can increase substantially.

Verifying the Flood Zone

One of the most important things a buyer or realtor should know about a property when it comes to flood insurance is its flood zone. Despite being removed from the rating consideration in FEMA and the NFIP, the private flood insurance market still look at this factor when it comes to rates. This means that flood zones directly impact your rates and risk of flooding.

Additionally, regardless of it being removed from the rating system, flood zones still have absolute control on whether or not the property is required to have a flood insurance policy with that property. Keep in mind that if you fall in flood zone A or AE, also known as high-risk flood zones or special flood hazard areas (SFHA), you're going to be required to carry flood insurance.

 

There are many cases where an incorrect flood zone is put in a policy — maybe because there was a recent flood insurance rate map or flood map update that wasn't known by the seller or confusion between different flood zones.

As a realtor, it's important that you are aware of this as well, if not an expert when it comes to it. A lot of potential buyers get frustrated when they get surprised about this requirement, so as a realtor it's best you let them know ahead of time.

When it comes to selling properties, you really want to help your buyer consider what the flood risk is and the chance of flooding. Some states like Texas actually require realtors and sellers to fully disclose the flood history and claims on a property, but regardless it wouldn't really hurt being transparent about these things. After all, we're talking about the safety of someone moving into a residential property.

If you've got any questions on a flood policy, the flood zone status of the property you're looking to buy, how the floodplain impacts flood zones, or anything related to floods, click below to go to our Flood Learning Center where we try to answer these questions.

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You can also call us if you need a second opinion from a flood insurance agent when it comes to your purchase of a property by clicking below.

The Flood Insurance Guru | 2054514294

Remember, we have an educational background in flood mitigation which lets us help you understand your flood risks, flood insurance, real estate selling and buying, and mitigating your property's value long-term.

As the country steadily moved into the Fall season, the southeastern region of the United States was hit by a substantial amount of rainfall. This was enough to cause flooding in some states, but the one most impacted was Alabama.

Alabama Flooding; President Biden Approves Disaster Declaration

A lot of families were faced with flood damage and today, we want to talk about how the federal government — under President Joe Biden, Jr. — are looking to help the victims of the flooding. Let's talk about how the disaster declaration issued on December 21st is going to help the people of Alabama in recovering from the flood loss during the October flood.

Alabama October Flooding

Shelby and Jefferson County received a significant amount of rainfall in October. According to National Weather Service (NWS) Birmingham, Alabama, several waves of slow-moving, intense storms brought estimated rain rates as high as 4-5 inches (100 to 130 mm) per hour late on October 6th, 2021.

The flooding itself was so bad that fire officials said they responded to 282 calls for assistance. This is outside of the 82 rescues that had to be done in homes and about a maximum of 20 for stranded vehicles in Pelham, Alabama alone.

Alabama Flooding; President Biden Approves Disaster Declaration

This event also caused a lot of casualties. At least four people died including children. Most of these deaths were vehicle-related meaning to say that the victims got overwhelmed with water while they are in their vehicles. These people and their respective families are in our thoughts.

When there's a flood, there's also bound to have damages on multiple infrastructure and properties. 

The Presidential Declaration

As of December 21st, President Joseph R. Biden Jr. approves the disaster declaration for Alabama. This declaration is in order to provide federal assistance to the state's residents' wellness and recovery from the damages of the flood. The President’s action makes Federal funding available to affected individuals in the counties of Jefferson and Shelby.

According to the Federal Emergency Management Agency (FEMA), major declarations like this generally mean that provide a wide range of disaster assistance programs for individuals and public infrastructure, including funds for both emergency and permanent work.

Alabama Flooding; President Biden Approves Disaster Declaration

How It Helps

The federal assistance includes grants or financial assistance for temporary housing, low-cost loans to cover uninsured property losses, and other programs to help individuals and business owners in Alabama recover from the effects of the October flooding. Most importantly, this also includes home repairs.

Focusing on the damages of the storm on properties, we want to focus on how this assistance can help recovery efforts for both residential and commercial properties. Damage assessments will be made based on your property's cost to repair and not the cost of repair.

Cost to repair basically focuses on the actual value of your property in its before-damage condition or before it was damaged by the October flood. This also includes any necessary actions to meet the basis for hazard mitigation against floods as set by FEMA. We also call this flood mitigation which acts as the first line of protective measures to reduce the damages when floodwater starts to inundate your property.

Calculating this will be managed by the federal assistance team, but you can also do this by following the formula below:

Alabama Flooding: President Biden Approves Disaster Declaration

Cost of repair generally is concerned with any specific action done to repair a property. For example, getting your paint and tape redone will have cheaper costs and doesn't guarantee that it can bring back the property to its pre-damaged condition.

It's important to keep in mind this major difference between the two as you may also be involved in recovering, repairing, and rebuilding your home. Property damage as a whole will be considered and not just the specific costs to certain repairs being done to your home.

Recovering from flood damage can be very tedious especially now that Risk Rating 2.0 expects homeowners to have all of their properties meet flood mitigation efforts or else face expensive flood insurance rates from FEMA. This is for the best considering that flood loss isn't something to be taken lightly.

Alabama Flooding; President Biden Approves Disaster Declaration

If you have questions on the cost to repair your home, if you have flood insurance and want to know how this can be helped with the new disaster declaration, or anything related to floods, click below to reach our team.

The Flood Insurance Guru | 2054514294

You can also go to our Flood Learning Center where we try to answer your flood insurance questions.

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If you are one of the eligible homeowners in Shelby and Jefferson County, Alabama, you can begin applying for assistance by registering online at http://www.DisasterAssistance.gov or by calling 1-800-621-FEMA (3362) or 1-800-462-7585 (TTY) for the hearing and speech impaired.

Remember, we have an educational background in flood mitigation which lets us help you understand your flood risks, insurance policy, and mitigating your property long-term.

Spring isn't stopping anytime and we're fast approaching the hurricane season. It seems that there are some states which are first to know this the hard way and one of them have been subject to multiple flooding just this year, Birmingham Alabama. Alabama in general seems to be receiving a lot of flooding even before we got into the Spring season.

The Flood Insurance Guru | Blog | Spring Flood 2021: Birmingham Alabama

We want to unpack what happened that caused these floodings in Central Alabama, understand how areas are impacted, their impacts on flood insurance, and availability of the flood insurance options.

Spring Storms in May

Yesterday, May 4th, Birmingham and most of Central Alabama faced severe storms and torrential rain. This immediately prompted the National Weather System (NWS) to issue a flash flood emergency for the metro area at the rush hours. The storms dumped up to 7 inches of rain within this time and a lot of areas faced not just warnings for flash flooding, but actual flash floods with strong currents.

The Flood Insurance Guru | Blog | Spring Flood 2021: Birmingham Alabama

One of the impacted areas was Jefferson County's Homewood city. The flood rose to 3-feet across the cities to the point that boats were needed to evacuate residents and emergency respondents to get to places.  Birmingham also saw these strong floods to the point that major highways like Hoover city were engulfed by floodwater. We've also seen trees falling due to the severity of the flood everywhere in Jefferson and Chilton County, and there was slight flooding in downtown Birmingham. Shelby County schools also faced the backlash as schools had to be moved back to virtual due to the damages that the establishments received due to flooding.

The Flood Insurance Guru | Blog | Spring Flood 2021: Birmingham Alabama

Power outages were also a big thing due to these storms and 10,000 of the 97,000 power outage reports statewide were from Birmingham. The overall damages are yet to be determined and this is expected especially since we've seen bridges and highways flooded, creeks overflowing, and numerous building damages. Many locals mention that this might be the worst flood they've seen, so we want to dive into the details of why this flooding was drastically worse and volatile.

Spring Flooding

Spring flooding has been a common occurrence across the country and this isn't different when it comes to what happened with Birmingham. Flooding generally has a natural way of flowing out of the area; it may runoff to nearby bodies of water like rivers and most commonly drained by the soil naturally. However, this wasn't the case due to the number of torrential rains that came in.

The Flood Insurance Guru | Blog | Spring Flood 2021: Birmingham Alabama

Now, in other areas where snow is a common occurrence in the Winter season, the spring thaw is the catalyst for these spring floods. Spring thaw is when the snow and ice collected during Winter start to melt and seep into the ground, saturating it, and some would flow into other areas known as a spring runoff.

Although the same can't be said for Alabama, there's still an important detail there: water seeping into the soil. When it comes to this recent flood, data shows that soil was oversaturated due to recent rains and the constant rain in a short period of time. This in turn didn't really give any leeway for the flood to be properly reduced both by natural means and by storm drainage systems.

The Flood Insurance Guru | Blog | Spring Flood 2021: Birmingham Alabama

These storms and torrential rains are to be expected and prepared for since we're moving into a warmer season. This generally means that rain will be more often due to warm fronts that eventually become rain when they clash with cold air.

This begs the question, what can you do if you're impacted by flooding in Birmingham?

Alabama Flood Insurance

I was able to speak with clients across the state and many of them say that they don't have flood insurance which almost gave me a heart attack. The reasoning behind this decision is because their insurance agent is telling them that they don't need one. If your agent told you that you don't need flood insurance because you're not in a flood zone, find yourself a new one because there's no such thing as "not in a flood zone". Eventually, when these property owners get flooded, they lose everything.

The Flood Insurance Guru | Blog | Spring Flood 2021: Birmingham Alabama

To clarify, FEMA maps every area to a certain flood zone, it just varies on the level of risks your facing: are you in a low-risk area or a high-risk area when it comes to flood? To get things straight, low-risk areas like Flood Zone X aren't required to have flood insurance, but it doesn't mean you don't need it. This is why I always say any insurance is better than no insurance at all.

Don't File that Claim

The first thing that comes to mind when a flood happens — if you're a policyholder — is to file a flood claim so that you can get back whatever was lost due to flood damage. However, we highly discourage this if the damages aren't really more than $10,000. This may sound unorthodox since the best thing to do is file an insurance claim regardless of home insurance, auto insurance, or any type of insurance.

The Flood Insurance Guru | Blog | Spring Flood 2021: Birmingham Alabama

The thing is flood claims stay with the property forever. So filing a claim even for damages less than $10,000 won't really eliminate the effects of flood claims to a property. One of the most common consequences of repeatedly filing a claim for flood damages is that the property's going to be on the severe repetitive loss list. A severe repetitive loss property is those that filed claims more than once in the last ten years and this impacts flood insurance drastically.

Flood claims directly increase the cost of premiums per claim, so if you do multiple claims in a short time, you're only saying that your property is very flood-prone so your premiums can go up drastically. We've seen this happen where a client had to pay an average flood insurance premium of about $10,000. Getting into a severe repetitive loss also hurts the resell value of your property and this can prevent you to be able to sell the property since it has a very expensive premium and recorded to be very flood-prone.

The Flood Insurance Guru | Blog | Spring Flood 2021: Birmingham Alabama

Flood Insurance Options

Now, it's important to mention that frequent flooding in an area may affect the flood insurance options. Birmingham residents can get flood insurance through the Federal Emergency Management Agency (FEMA) and the National Flood Insurance Program (NFIP) or the private market.

When it comes to availability, it's important to note that there might be some areas that the private insurance companies may pull away from since generally, they don't want to take those risks. This leaves you to go through FEMA exclusively, but let's talk about the difference between these two.

The NFIP

FEMA and the National Flood Insurance Program (NFIP) don't really get to pick and choose whom they're going to provide their insurance to or what risks they're going to take. This is an important difference between what we mentioned on private flood insurance and federal flood insurance.

The Flood Insurance Guru | Blog | Spring Flood 2021: Birmingham Alabama

The NFIP provides a max amount of $250,000 when it comes to residential property damage and up to $500,000 in commercial property damage. Regardless of the policy type, residential or commercial, there will be coverage on contents or personal items that maxes out to $100,000. The NFIP also doesn't provide additional living expenses, loss of use, and replacement costs with their policies. The only time additional living expenses coverage may be provided is if there's a presidential declaration on the flooded areas.

When you purchase federal flood insurance, you may also have to make sure that you adjust your plans since there will be a 30-day waiting period before the policy takes effect on your property. If you're planning to go through FEMA for your flood insurance, do it as soon as possible to make sure that you get covered before another flooding happens within the next thirty days.

The Private Flood

We've already covered some concerns with the availability of flood insurance in Birmingham or the lack thereof, but since there are numerous private insurance companies providing flood policies in Alabama and Birmingham, there's still a big chance that you can purchase flood insurance in the private market.

Private flood insurance policies don't have any coverage limits, so the cost of coverage they can and will provide won't be maxing out at a specific amount. This is why we recommend people with expensive properties to go through the private market since it's certain that the coverage on the property will cover everything. 

The Flood Insurance Guru | Blog | Spring Flood 2021: Birmingham Alabama

Coverage in private flood policies can go up to $10,000,000 on properties, structures, and buildings. You may also have the flood policy written for multiple structures in your property in a single policy, something that FEMA and the NFIP will have you carry separate flood insurance for. This is with up to $1,000,000 in personal items coverage and includes additional living expenses, loss of use, and replacement costs.

If you're looking to get flood insurance within the next week or so, we encourage you to opt-in the private market since they can have the policy take effect on the listed properties within fifteen days.

If you have any questions on how these recent flooding can impact you, your flood insurance options, flood risks, or anything about flood, reach out to us. Remember, we have an educational background in flood mitigation and we want to share this to protect the value of your property long term. You too can be prepared through flood education and awareness. Click the links below to know more and get started:

The Flood Insurance Guru | 2054514294    Get Your Quote from Flood Insurance Guru    The Flood Insurance Guru | Chris Greene | YouTube

The Flood Insurance Guru | Will the Smith Lake Flooding Impact my Birmingham, AL Flood Insurance?

In the latter part of March 2021, for three consecutive weeks, the community of Birmingham, Alabama experienced severe weather however unlike the past two weeks, flooding and strong winds presented a threat to the city. We observed the saturation of land causing trees to fall and the Smith Lake becoming the culprit to the flood damage to the area. This can really be alerting for this region since it does look like the state is experiencing flooding that's becoming worse each time.

Now, when it comes to flood insurance, this can directly impact you whether you're doing a policy with the National Flood Insurance Program (NFIP) under FEMA or the Private Flood Insurance market. Let's talk about how this can impact you and the things you need to know when it comes to your flood insurance policy when you experience flooding like this.

The Flood Insurance Guru | Will the Smith Lake Flooding Impact my Birmingham, AL Flood Insurance?

Now, it's important to note that there will be flood insurance rates increase in the future due to your Birmingham community becoming more flood-prone in a short period of time. If the flood map also shows that the area should be considered under Special Flood Hazard Area (SFHA), then the flood insurance rates can be expected to become more expensive with FEMA and the NFIP. However, this can also mean a good impact if you're doing a policy with FEMA and the NFIP then you might be able to go through the Increased Cost of Compliance (ICC) coverage. 

What is the ICC?

The Increased Cost of Compliance (ICC) coverage is an additional property coverage provided by FEMA through the National Flood Insurance Program. This generally provides additional money for the property's flood mitigation compliance purposes of up to $30,000 in order to reduce the flood risk in the future. It's important to note that the increased coverage will be separate from your standard flood insurance property coverage of $250,000 if it's a residential property and up to $500,000 if it's a commercial building.

The Flood Insurance Guru | Will the Smith Lake Flooding Impact my Birmingham, AL Flood Insurance?

It's most likely that you're eligible for the ICC if you're one of the impacted properties by the Smith Lake flooding in Alabama. The eligibility for this requires that the property should either be substantially damaged or is considered a repetitive loss.

ICC Eligibility

When we say substantially damaged, this means that the property owner experienced a flood loss on his home that's worth 40 to 50 percent of the house's market value. This means that if you were flooded and the total damage is less than 40% of the house's market value, then you won't be able to get ICC coverage. Now this can be crucial since the market value of properties over at Birmingham and Smith Lake is very high, so you're really going to have to be very careful on reporting the total damage on your residence if you're looking to be eligible through this condition. 

The Flood Insurance Guru | Will the Smith Lake Flooding Impact my Birmingham, AL Flood Insurance?

Repetitive Loss, on the other hand, means that a property has had two or more flood claims over the last 10 years. Loss history includes all of the ownership on the building since 1978 or since the building's construction after 1978.

What's Flood Mitigation Compliance

When we say flood mitigation compliance, this means that the structure of the building itself should meet the floodplain management ordinances set either by the federal government or the local community. Now,  there are four accepted floodplain management activities when it comes to complying with FEMA's flood mitigation standards: elevation, floodproofing, relocation, and demolition.

Elevation

When we say elevation, this means that the goal of the activity is to raise your property's lowest adjacent grade above the base flood elevation (BFE) of your community. This means that you have to elevate your property's lowest flood at least a foot above the base flood elevation.

The Flood Insurance Guru | Will the Smith Lake Flooding Impact my Birmingham, AL Flood Insurance?

Floodproofing

For this activity, it's important to note that this is only for non-residential properties. This requires that the commercial properties should be watertight below the BFE by reinforcing your walls, installing a watertight shield for doors and windows, building a drainage collection system, sump pumps, and check valves.

The Flood Insurance Guru | Will the Smith Lake Flooding Impact my Birmingham, AL Flood Insurance?

Relocation

When a property's being relocated, it simply means that you're going to move to another location on the same lot or another lot, but in order to meet compliance standards, you want to make sure that you're at least moving in a lower-risk area. There's no problem with relocating to a new location within the Special Flood Hazard Area (SFHA) or the 100-year flood zone however you're still going to have to make sure that it's going to be compliant with FEMA still. This can be the greatest flood prevention activity that really helped a lot of homeowners avoid the impact of major flooding and significantly reducing the risk of flooding on their property.

The Flood Insurance Guru | Will the Smith Lake Flooding Impact my Birmingham, AL Flood Insurance?

Demolition

Lastly, this activity is only done when the first three are no longer a viable option due to the flood damage being too severe for your property. Now, it can still be possible that you can redevelop the building after demolition however it's important to make sure that the laws and requirements of the Federal, State, and community are followed. 

The Flood Insurance Guru | Will the Smith Lake Flooding Impact my Birmingham, AL Flood Insurance?

Beyond Flood Insurance 

Now, it's also important to shed light on the possible negative impacts of lake flooding and the future risk of flooding in the area on your overall flood insurance purchase. If you're doing private flood insurance, then this could mean that they may choose to pull out from providing Birmingham, Alabama flood insurance due to the high risks that it's presenting to the table. Since FEMA doesn't choose their risks, severe repetitive loss as we mentioned before is a condition to be eligible for the ICC coverage, but private flood may see this as a red flag to continue providing flood policies and decide to non-renew.

It's still important to note that private flood is still a fair market with its own standards and guidelines. In fact, the ICC coverage usually is included in the property's coverage if you're doing a private flood insurance policy.

The Flood Insurance Guru | Will the Smith Lake Flooding Impact my Birmingham, AL Flood Insurance?

If you have questions on FEMA ICC coverage, if you're eligible for it, your flood insurance options, or any question about flood, feel free to reach out to us. We'll keep our doors open for you! You can click the links below to get started or watch and subscribe to our YouTube channel where we post flood education videos daily.

Remember, we have an educational background in flood mitigation and we want to share this knowledge with you, so you can be prepared when crap happens.

The Flood Insurance Guru | 2054514294  Get Your Quote from Flood Insurance Guru   The Flood Insurance Guru | Chris Greene | YouTube

 

My Post (19)-1

Sorry you need an elevation certificate for us to give you a flood insurance quote in Alabama.

Have you ever heard this when shopping for flood insurance in Alabama?

I know I have heard this almost everyday.

So is it true?

Well it could be and couldn't be.

We are going to look at some scenarios to give you an understanding of when it maybe required and when it may not.

Lets look at two things

  1. National Flood Insurance Program
  2. Private flood insurance

So does the National Flood Insurance Program require an elevation certificate in Alabama?

This could depend on a few things. First thing is the flood zone. If you are in the special flood hazard area also known as the 100 year flood zone then it could be required. We are talking about the following zones.

Flood zone A

 

Flood zone AE

 

Flood Zone V

 

So if you are in these zones and your property was built after the first flood map then generally an elevation certificate will be required.

What if it was built before the first flood map?

Well if the property has been substantially damaged or improved then an elevation certificate could be required.

Now let's answer the question you came to this blog for.

Does Alabama private flood insurance require elevation certificates?

This is a moving target question. Some private flood insurance carriers will require an elevation certificate if it is a post firm structure and in the special flood hazard area.

Some will the more negative your elevation is below the base flood elevation. Many times carriers use this as part of their flood score. So they may decline the risk but if you have an elevation certificate they may approve the risk.

Click here to order an elevation certificate

Thankfully the majority of the time private flood insurance carriers in Alabama will not require an elevation certificate.

Maybe you have been told all flood insurance is the same?

Then it maybe time to do a flood insurance review.

So if you have further questions about elevation certificates then click here.

You can also learn more about flood insurance by visiting our YouTube channel or tuning into our podcast.

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

 

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