Alabama Insurance Underwriting Association (AIUA)

The Alabama Insurance Underwriting Association (AIUA) is Alabama’s insurer of last resort for windstorm and hail coverage in coastal Baldwin and Mobile counties, the areas where private insurers often decline to write wind coverage. AIUA does not cover flood, storm surge, or water intrusion; those perils still require a separate flood policy through the National Flood Insurance Program (NFIP) or a private flood carrier.

Is AIUA membership mandatory?

Yes, for insurers. Under Alabama law, every insurer authorized to write fire and extended-coverage insurance in Alabama must be and remain a member of AIUA as a condition of its authority to transact business in the state. For homeowners, membership is not something to opt into or out of; AIUA exists so a coastal home can get windstorm coverage when the private market will not offer it.

For example, a homeowner buying a property in Orange Beach may find that a private carrier will write the homeowners policy but exclude wind. The wind coverage is then placed through AIUA, and flood is placed separately through NFIP; that is three policies for one house, which is normal on this stretch of coast.

What does an AIUA policy actually cover?

AIUA covers windstorm and hail damage to the structure. It does not cover flood, storm surge, water intrusion, fire, theft, or liability; those stay with a homeowners policy (fire, theft, liability) and, separately, a flood policy (rising water). Knowing which policy pays for which kind of damage is what keeps a coastal claim from getting denied. See windstorm insurance and flood insurance for how the pieces divide.

Where does AIUA coverage apply?

AIUA’s coverage area is limited to Alabama’s coastal counties, Baldwin and Mobile. Homes further inland get windstorm coverage through their standard homeowners policy or a private wind endorsement, not through AIUA.

A free coverage review with Olive Insurance Services, LLC can confirm whether a coastal Alabama home needs an AIUA policy or can find private wind coverage, and how it fits with flood and homeowners coverage.

Sources

Code of Alabama Section 27-1-24 (AIUA mandatory insurer membership).