About the Alabama Insurance Underwriting Association
Several factors including the average annual loss ("routine", non-storm losses), the Probable Maximum Loss (PML) that can be expected in the event of a catastrophic loss (several different modeling algorithms are used in this process), and the routine operating expense of the AIUA, are used by independent actuaries to determine an actuarially sound rate sufficient to cover the cost of AIUA operating expenses, routine claims and the cost of purchasing reinsurance. These rates are then filed with the Alabama Department of Insurance where they are carefully analyzed by the Department before they are approved and implemented.
When considering your property insurance needs, find a professional insurance agent with access to known, reputable insurance markets. Make sure your property is well-maintained and in insurable condition. Where feasible, retrofit your home to include wind loss mitigation features. Don't wait until the last minute to obtain coverage. Read your policy and all policy documentation carefully. Consider higher deductible options. Don't "low-ball" your coverage limit…it almost always costs more to repair or replace a home than most people plan for…Buy flood insurance equal to your fire and wind coverage. Most of the damage incurred during recent hurricanes was caused by flood, not wind. And remember, flood is NOT COVERED under most property policies including AIUA policies.