Are you paying $600 more than your neighbor for flood insurance and not even know it?
In Pelham, Alabama, two homes on the same street can have drastically different premiums, even with identical coverage. The reason? Most homeowners aren’t shopping their options beyond FEMA.
In this article, you’ll learn how two homes on Lakeside Circle received quotes of $350 and $997, and how small differences in policy selection can cost you over $1,000 a year. We’ll also show you what to say to your lender and how private flood insurance can unlock big savings.
The $350 Policy in Alabaster
Even in high-risk zones like Alabaster (ZIP 35007), we’ve secured private policies for as low as $350. One homeowner on Willow Point Circle saved over $750 simply by switching.
Meanwhile, just miles away on 1st Ave W, homeowners were renewing at $1,100 and up. The difference? One agent shops private carriers, the other defaults to FEMA.
What Your Lender Actually Requires
This is where most homeowners get misled. You receive a letter from your lender saying flood insurance is required, so you buy the first policy quoted, usually FEMA.
But here’s the truth:
- Lenders only require federally compliant coverage
- They do not require a FEMA policy
- Private flood insurance meets all guidelines and is fully accepted
We work with trusted carriers like Chubb, Hiscox, and Dual to match coverage and often cut premiums by 30% to 60%.
Premiums Are Personal
Flood insurance is not one-size-fits-all. Elevation, foundation type, and insurer choice matter.
If you’re paying more than $1,000 a year, and you’re not right on Bishop Creek or Buck Creek, you’re likely overpaying due to default FEMA pricing.
Frequently Asked Questions (FAQ)
Is private flood insurance accepted by lenders?
Yes. As long as it meets federal standards, all major lenders accept it.
Can I switch before my FEMA policy renews?
Yes. You can cancel mid-term and receive a prorated refund under FEMA Cancellation Reason Code 26.
How is my premium calculated?
Factors include elevation, foundation type (slab vs. crawlspace), proximity to water, and insurer guidelines.
How can I know if I’m overpaying?
Get a policy audit. We compare FEMA and private rates for your property and show you the difference.
Don’t Let Your ZIP Code Overpay
If you’re in Pelham, Alabaster, or anywhere in Shelby County, your flood insurance rate should reflect your home’s actual risk, not just its zone.
Let our team review your current coverage and re-shop your premium. With access to top-rated private carriers, we help homeowners cut unnecessary costs and stay compliant with their lender’s requirements.
Don’t guess what your neighbor is paying, find out what you should be.
