-
Frequently Asked Questions
Does AIUA provide coverage in the entire state of Alabama?
No. Eligible properties must be in areas south of the 31st parallel in Baldwin and Mobile counties of Alabama.
-
How do you determine the territory of a property?
Go to the MAPS section on the AIUA website & enter the property address.
-
Can consumers apply for coverage with AIUA directly?
No. To apply for coverage with AIUA, consumers must contact an AIUA Authorized Agent.
-
Does an agent have binding authority?
No. An agent does not have any authority to bind coverage on behalf of the Association under any circumstances.
-
Does AIUA insure vacant or farm property?
No.
-
Does an agent determine if a property is eligible for coverage?
No, an agent is required to complete prescreening questions to determine if the property is in compliance with AIUA’s Rules and Procedures for new application submissions, however, AIUA determines if the property meets all AIUA underwriting standards and guidelines.
-
If a structure has pre-existing damage, is it eligible for coverage with AIUA?
No.
-
Is a structure that has pre-existing damage or has outstanding repair requirements that resulted in a denial, cancellation or non-renewal eligible for coverage with AIUA?
No.
-
If a structure and/or property does not meet our underwriting guidelines for coverage, who should be contacted?
Your servicing agent will assist you with any questions, concerns and submitted correspondence, however, as the homeowner, you may need to contact a licensed professional to determine the extent of the damage and the appropriate action(s) needed.
-
If a structure is undergoing renovations or plans to have renovations completed, is it eligible for coverage through the Association?
A structure may be eligible for coverage. However, the agent must provide a copy of the contract or work order from a licensed contractor detailing work to be completed, estimated cost and estimated completion date for review of acceptability.
Note: The renovations cannot exceed 60 days. The structure must not be in adverse condition. The dwelling must be owner occupied.
-
Are there any restrictions on mobile homes?
Mobile homes must be at least 8’ x 32’ in size, tie-downs installed, and proof of the current completed Alabama Manufactured Housing Commission Installation Certification Label must be provided. Mobile homes are not eligible for DP-2 Replacement Cost Coverage. Additional information is available at Alabama Manufactured Housing Commission, (www.amhc.alabama.gov; 334-242-4036).
-
Does AIUA provide coverage for “Tiny Homes”, or portable buildings converted into a residential home?
AIUA may provide coverage if the structure is a frame-built structure tied down at the location.
Note: A home that is not built from the ground up at the location must be rated as a manufactured/mobile home and is required to possess a current installation decal confirming the home is tied down. Variations of these types of structures may not be eligible for coverage through the Association.
-
Who bills the mortgage company for payment for a new application?
It is the agent's responsibility to bill the mortgage company if the premium is escrowed.
-
Who bills the mortgage company for mid-term changes to a policy?
It is the agent's responsibility to bill the mortgage company if the premium is escrowed.
-
When can coverage become effective?
For acceptable risks with complete submissions, the policy effective date will be determined as follows:
A. New policy (no title transfer) -- The effective date of a new policy shall be 12:01 am local time on the day the completed application and premium due are received in the Association Office.
B. New policy (transfer of title) -- For property real estate closings where there is a transfer of ownership of property, the Association will issue a 30-day binder with coverage effective the day of the request or the date of the closing, whichever is later. In order to qualify for this provision, the application(s), photos, copy of closing settlement statement, copy of the real estate appraisal and premium payment in full must be received by the Association prior to the expiration of the binder. The application must be accompanied with a signed copy of the closing papers.
C. New coverage / higher limits -- The effective date and waiting period for new coverage or an increase in limits on a policy in force shall be 12:01 am local time on the date the Association receives the change request and premium due or on such later date set by the insured to conform with the reason for the change. -
Is coverage in effect if the invoice option is chosen when submitting an application?
No. See previous question.
-
Are there eligibility requirements for the Mortgage Closing Binder?
Yes. It must be an originating mortgage - a transfer of ownership from a seller to a buyer (the applicant).
-
What transactions are NOT considered an originating mortgage?
Line of credit, second mortgage, refinance, construction loans, credit card with equity line of credit, any type of personal loan, 30-day notes, 60-day notes or similar instruments, or any financial arrangement that does not meet the Association's definition of originating mortgage.
-
Is there a minimum premium?
Yes. $100 minimum premium for both residential & commercial.
-
What are the cancellation rules and procedures?
A. AIUA policies may be cancelled on a pro-rata basis for the following reasons:
- Coverage is replaced by another Company. Satisfactory evidence must be provided to AIUA.
- The property is sold. Satisfactory evidence must be provided to AIUA.
- There is a total loss of the property.
- AIUA determines that the property is no longer insurable under the Rules and Procedures of AIUA.
B. The effective date of Cancellation must occur within the current policy term.
C. Cancellation for any reason other than reasons stated above shall result in a fully earned, non-refundable premium to AIUA. -
How do you determine if a policy is receiving an IBHS Fortified Discount?
The 2nd page of the DOI Policy Outline lists the eligible discounts and discounts applied. The DOI Policy Outline is printed with the policy declarations package and is available in the Agent Portal.
-
Can an applicant, insured or agent choose the dwelling limit?
No, AIUA requires the dwelling to be insured to 100% of its value, subject to maximum available AIUA limits, as determined by a current Marshall, Swift, Boechk replacement cost computation.
-
Does AIUA provide coverage for commercial properties?
Yes, AIUA does provide an ACV commercial wind-only policy for eligible risks as outlined in our Plan of Operations.
-
Does a commercial wind policy have only a percentage deductible?
No, commercial wind-only policies have an AOP deductible for all wind other than a hurricane AND a percentage deductible for hurricanes.
-
What is the maximum limit of coverage for eligible commercial properties?
The Association will provide wind coverage for eligible commercial properties in the amount of no more than $1,000,000 per building, not to exceed $3,000,000 at any one insured location.
-
What are the maximum limits of coverage for eligible residential properties?
The maximum dwelling limit AIUA will insure for a residential risk is $500,000 with the maximum personal property limit of $250,000 (personal property limit cannot exceed 50% of the dwelling limit).
-
What if the value of the structure exceeds the maximum limit available?
When the value exceeds the maximum Association limit, the Association waives any applicable coinsurance requirements and charges a premium in accordance with the First Loss Scale Formula.
-
If the value of the structure exceeds the maximum limit available, is the deductible based on $500,000 (residential) and/or $1,000,000 (commercial)?
No. The Total Insurable Value of the Structure will be used to determine the applicable deductible. The applicable Percentage Deductible amount is determined by multiplying the Total Insurable Value of the Structure by the Deductible percentage.
Example: Limit of Liability equals $500,000. Total Insurable Value of the Structure equals $750,000. Applicable Hurricane Deductible is five percent (5%). Applicable Hurricane Deductible applied to the loss is $750,000 x 0.05 = $37,500.
-
What do I do if my agent is no longer authorized with the Association?
AIUA provides a list of authorized agents on our website. You should choose an agent and contact them to submit an Agent of Record form so they can service your policy.
-
Who should be contacted in the event of a loss?
The Insured can call 1-866-780-2482 to submit a claim, but we recommend that the insured also contact their servicing agent to make them aware of any claims.
-
Who should an Applicant/Insured contact with questions about an AIUA policy?
Applicants/Insureds should contact their servicing agent who should be able to assist them with any questions they may have concerning their AIUA policy.
-
Does AIUA offer liability coverage?
No.
-
Does AIUA offer Loss Assessment coverage?
No.
-
Does AIUA offer Fair Rental Value Coverage (Loss of Rents)?
Yes. AIUA policies include limited Fair Rental Value coverage. This coverage is outlined in the policy form under the section titled Other Coverages, Fair Rental Value.
-
Does the Association automatically renew policies?
No. A Notice of Current Policy Expiration and Offer to Rewrite Coverage Invoice will be sent to the agent, insured and mortgage company (when applicable) prior to the policy expiration date.
-
Does AIUA require the insured to carry flood insurance?
Yes. Flood coverage is required in an amount at least equal to the AIUA policy limits or the maximum provided by the National Flood Insurance Program for those properties located in flood hazard zones A or V.
-
Does AIUA require proof of flood coverage for condominiums if the condo association has flood coverage for the entire building?
Yes, the named insured is required to maintain a flood policy as indicated above unless the condo unit is located above the second level of any multi-level building.
-
Is property located in areas protected by Coastal Barrier Resources Act (CBRA) eligible for coverage with AIUA?
No.
-
Will AIUA issue a policy or process a premium-bearing endorsement in the event that a named storm has been declared by NOAA to be within 80 degrees W Longitude and 20 degrees N Latitude or a Tropical Storm Watch/Warning has been declared for Baldwin and/or Mobile County?
No. E-Commerce will be closed for new business applications and binders and will remain closed until 24 hours after the storm dissipates and all watches/warnings have been lifted.
-
Will AIUA accept digitized signatures on documentation?
Yes. AIUA accepts digitized signatures on all our documents with the proper audit paper trail included. Examples of acceptable applications: Docusign and Adobe Sign.
-
What forms of payment are accepted by AIUA?
AIUA accepts premium payments in the form of a check, cashier’s check, and money order. ACH (E-check) and Credit Card (incurs 2.95% fee) options are available on the AIUA website under ‘Make a Payment’. Please note, AIUA does not accept cash or debit cards.
-
Can I make a payment online? Can I make a payment by phone?
Yes. Online payments can be made by going to the AIUA website and clicking on ‘Make a Payment’. Policyholders will need their policy number and property zip code to access invoices.
Phone payments can be made by calling: 833-735-2752 and following the voice prompts.
-
What is AIUA’s mailing address?
All payments and policy-related documents can be mailed to:
Alabama Insurance Underwriting Association
DEPT# 6597 PO BOX 11407
BIRMINGHAM, AL 35246-6597Overnight address for mail:
Alabama Insurance Underwriting Association
Back
DEPT# 6597
2090 PARKWAY OFFICE CIRCLE
HOOVER, AL 35244