There’s a leaking dam above Birmingham suburbs and insurance won’t cover even 2 houses: Here’s why

One of the largest dams in the Birmingham-area with the greatest risk of failure for the last four years is also the least insured for threats to its nearby suburban communities.

Insurance coverage for Lake Purdy Dam was drastically lowered in late 2021 when engineering reports showed that the century-old structure required major repairs.

Insured for just $1 million to cover damage to homes and property within its path in the event of an accident, Lake Purdy Dam in Shelby County has the lowest amount of coverage among all dams within the system of Central Alabama Water, formerly known as the Birmingham Water Works.

“After Nov. 1, 2021, insurance providers would only provide $1 million in liability coverage after engineering reports indicated the dam needed rehabilitation and repairs,”