Why does my policy have more than one deductible?

A policy commonly carries a flat deductible for most claims and a separate percentage-based wind and hail deductible in storm-exposed states like Georgia.

Does my own insurance cover me when I stay in an Airbnb or VRBO?

The host's short-term rental policy protects the host, not you. As an Airbnb or VRBO guest, your own homeowners or renters insurance usually covers your belongings and personal liability away from home, within policy limits, while travel insurance covers trip-specific risks neither the host nor your home policy will.

Does homeowners insurance cover flood damage?

No. Standard homeowners policies exclude all flood damage regardless of cause.

What does uninsured motorist coverage do?

If you are hit by a driver with no insurance or not enough insurance, uninsured and underinsured motorist coverage pays your medical bills.

When do we use Selective for flood coverage versus NFIP?

Selective private flood wins for Zone X and moderate AE properties where it beats NFIP on price and offers higher limits with ALE coverage.

Do I need flood insurance in Alabama?

All FAQs

Quick answer: No home policy covers flood, so flood insurance is always a separate policy. It is required if you have a federally backed mortgage on a home in a FEMA high-risk flood zone, and worth weighing even outside one. Flood coverage is available through Olive Cover.

Why flood is always separate

Every standard homeowners policy in Alabama excludes flood. That is not an Alabama quirk, it is true nationwide, and it surprises people every hurricane season. Rising water from a storm, an overflowing river, or heavy rain that pools and enters the home is flood, and only a flood policy pays for it. Wind that tears the roof is a different peril handled by the homeowners or wind policy.

When it is required, and when it is just smart

Flood insurance is mandatory when a home has a federally backed mortgage and sits in a FEMA-designated Special Flood Hazard Area (the high-risk zones, labeled A or V on the flood map). The lender requires it and will not close without it.

Outside a high-risk zone it is optional, but the risk does not stop at the zone line. In the City of Mobile, a home carries roughly a 26 percent chance of flooding over the life of a 30-year mortgage, more than six times the likelihood of a fire over the same period. Plenty of flood claims come from properties the map calls low-risk.

Example

A homeowner in a low-risk zone near Three Mile Creek skips flood coverage because the lender does not require it. A heavy rain backs the creek up and puts eight inches of water through the first floor. The homeowners policy pays nothing, because that is flood. A flood policy would have covered the structure and, with contents coverage, the belongings.

How to decide for your address

Your flood risk depends on your exact address, your flood zone, and whether a lender requires coverage. A coverage review can pull your flood-map status and tell you what a policy would cost, so the decision is based on your property rather than a guess. See Alabama flood insurance, how long flood coverage takes to start, and Alabama homeowners insurance for more.