Flooding in Alabama caused a lot of problems in 2019 and 2020. Many property owners were not aware of certain coverages that were available. As a result their mortgage may have been paid off but they could not replace or repair their home.
So today we want to answer a few questions on excess flood insurance in Alabama
- What is Alabama excess flood insurance
- When would excess coverage be needed
In understanding what Alabama excess flood insurance is let's think of a brick wall like the photo below.
Do you see how the bricks are stacked on top of each other? Well this is exactly what excess flood insurance in Alabama looks like.
You have the primary policy through the National Flood Insurance Program. If it is a residential building then you have coverage up to $250,000. If it is a commercial building you have coverage up to $500,000.
So what happens if this is not enough coverage? This is where excess flood insurance coverage in Alabama kicks in. You would purchase an additional policy through a private flood insurance company. When the coverages on the National Flood Insurance Program are exhausted then this excess policy would kick in.
It's important to know in order to generally do an excess policy you have to have an underlying policy with the National Flood Insurance Program for the max amount of coverage available.
It's also important to understand there would also be multiple deductibles in this situation. One for the National Flood Insurance Program policy and one for the excess policy.
It's also important to understand that different guidelines apply to excess policies and normal private flood insurance policies in Alabama.
So we have looked at what is excess flood insurance coverage in Alabama and when would you need it. Maybe you have further flood questions.
Want to know what flood insurance options are available in Alabama? Click here.
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.