Civil engineering structures are constructed for strength, serviceability and durability. The structures thus constructed involve huge investment and labour work. In order to protect the structure from various damages, periodic monitoring of structures is necessary. Hence Structural Health Monitoring (SHM) plays a vital role in diagnosing the state of the structure at every moment during its life period. For this purpose, sensors are deployed in the structures for its efficient health monitoring. Sensors cannot be deployed at random locations of the structure. They have to be located at those points which reflect the damage. In this study, a 3-storey and a 4-storey building are taken and Modal Strain Energy (MSE) is used for finding the initial locations of sensors. The number of sensors obtained is then optimized using Genetic Algorithm (GA) technique. Finally damages are induced in certain locations of the structure and a damage detection technique called as "Flexibility Matrix Based Technique (FMBT)" is introduced for damage localization in the structure.