What is the Georgia Underwriting Association?

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Quick answer: The Georgia Underwriting Association is the state's residual property market (O.C.G.A. 33-33-1). It writes wind and coastal coverage for homes that cannot get it in the standard market, and it settles losses on an actual cash value basis rather than full replacement cost. Coverage is available through Olive Cover.

The Georgia Underwriting Association (GUA) is Georgia's residual property insurance market, created under O.C.G.A. 33-33-1. A residual market is a coverage source of last resort for property that cannot get standard coverage from private carriers because of its risk profile, in this case wind and coastal exposure.

Homeowners along the Georgia coast, in counties such as Chatham, Glynn, McIntosh, Camden, and Bryan, are the primary users of the GUA. When a private carrier limits or excludes wind coverage on a coastal home because of hurricane risk, the GUA writes that wind coverage directly, filling the gap the standard market leaves open.

The GUA settles claims on an actual cash value basis rather than full replacement cost. Actual cash value means the payout for a covered loss reflects the item's value at the time of the loss, after depreciation for age and wear, not the cost of a brand-new equivalent. Replacement cost coverage, more common on standard-market homeowners policies, pays the full cost to rebuild or replace without deducting for age.

For example, a hurricane damages a 20-year-old roof on a home in Savannah insured through the GUA. Instead of paying the full cost of a new roof, the GUA settlement subtracts depreciation for the roof's age and condition before the loss. The homeowner receives less than the cost of full replacement and covers the difference out of pocket, since the GUA policy does not include a replacement cost option the way many standard-market policies do.

This actual cash value settlement basis is the tradeoff for coverage that would otherwise be unavailable. It applies specifically to the wind portion of a GUA policy; other perils like fire are typically still covered through a standard carrier's homeowners policy where one exists alongside the GUA wind policy.

Georgia Underwriting Association coverage is available through Olive Cover for homeowners in coastal counties who cannot place wind coverage in the standard market. A coverage review can confirm whether a specific coastal address qualifies for standard-market wind coverage or needs a GUA policy, and Olive Cover's carrier page lists the standard-market options available for the rest of the homeowners policy.