What is the AIUA (Alabama Insurance Underwriting Association)?
Why the AIUA exists
Along the Alabama coast, most standard home and business insurers exclude windstorm and hail, or decline to write the property at all, because hurricane and tropical-storm damage is so concentrated there. That leaves a gap: a coastal homeowner can be unable to buy the one coverage the coast most needs. The AIUA is the state's answer. It is a residual market, meaning it exists to cover the wind risk that the regular market will not, so property near the Gulf can still be insured and financed.
Under Code of Alabama Section 27-1-24, every insurer licensed to write fire and extended-coverage insurance in Alabama must be a member of the AIUA and share in its results. That shared-responsibility structure is what keeps the pool funded.
What the AIUA covers, and where
The AIUA writes windstorm and hail coverage in the two coastal counties: Mobile and Baldwin. It covers the damage a hurricane or severe coastal storm does with wind: roof loss, torn siding, broken windows, and the water that gets in once the wind opens the building.
Example: a Gulf Shores homeowner whose standard policy excludes wind buys a standard homeowners policy for fire, theft, and liability, and a separate AIUA wind policy for hurricane wind. The two policies together do the job the standard policy alone will not.
What it does not cover
The AIUA covers wind and hail only. It does not cover flood or storm surge, which is the single most damaging part of a coastal storm for many homes. Flood needs a separate policy through the National Flood Insurance Program or a private flood insurer. A coastal Alabama property can therefore need three pieces: a standard homeowners policy, an AIUA wind policy, and a flood policy. Missing any one leaves a real gap.
How to know if you need it
If your home or business is in Mobile or Baldwin county and your standard insurer excludes wind or will not write you, the coastal wind pool is likely how you cover the wind risk. If you are inland, standard carriers usually still include wind and you do not need the pool. Because the right split between a standard policy, wind, and flood depends on your exact address, flood zone, and lender requirements, a coverage review is the way to get the specific answer for your property. See Alabama flood insurance, Alabama homeowners insurance, and the coastal Alabama hurricane insurance guide for more.