June 2020
- Four of the 10 costliest hurricanes in U.S. history have impacted Alabama: Hurricane Michael in 2018, Hurricanes Irma and Harvey in 2017, and Hurricane Katrina in 2005.
- There were 54,348 flood insurance policies in Alabama in 2018. Standard homeowners policies typically do not cover flood damage. Flood insurance is covered by the National Flood Insurance Program, but private flood insurance is becoming increasingly available.
- There were 784,657 people living in coastal areas in Alabama in 2015, up by 2.5 percent from 2010, according to the U.S. Census Bureau.
- In Alabama, about 52,000 single-family homes were at risk in 2020 for storm surge damage from hurricanes up to Category 5 strength, according to CoreLogic, Inc. These homes would cost $9.4 billion to completely rebuild, including labor and materials.
- The Alabama Insurance Underwriting Association (AIUA) was voluntarily formed in the early 1970s by the insurance industry in cooperation with the Alabama Department of Insurance as a market of last resort to provide property and windstorm and hail insurance in the coastal areas of Alabama.
- The AIUA’s exposure base has expanded rapidly. The exposure to loss—insured value of all properties—was $5.1 billion in fiscal year 2019 up from about $3.3 billion for fiscal year 2010. The AIUA had about 18,000 policies in force in fiscal year 2019 compared with 21,000 policies in 2018.
- AIUA policies have a hurricane deductible that applies only in the event of a hurricane. The standard deductible for all other perils is $500.
Other Resources
Alabama Insurance Underwriting Association
I.I.I. Facts & Stats: Flood Insurance
I.I.I. Facts & Stats: Hurricanes
I.I.I. Issues Updates: Catastrophes
I.I.I. Issues Updates: Hurricane and Windstorm Deductibles
