Alabama FAIR Plan: there isn't one; what to do if you're non-renewed in Alabama

Does Alabama have a FAIR Plan?

No separate inland FAIR Plan. Alabama does have a coastal wind-and-hail residual market — the Alabama Insurance Underwriting Association (AIUA), www.aiua.org ↗ — but it covers wind and hail only, in Baldwin (south of the 31st parallel) and Mobile (south of the 31st parallel), so it isn't a general insurer of last resort. For a hard-to-insure inland home that's been declined, there is no FAIR Plan: the route is the standard admitted market and then the surplus-lines (E&S) market via a licensed broker.

What does it cover?

AIUA (the Beach Pool): a limited-peril policy covering WIND and HAIL only, for eligible residential and commercial property south of the 31st parallel in Baldwin and Mobile counties. It does NOT cover fire, theft, liability, or flood. AIUA non-renewed all fire-coverage policies effective 2023-10-01 -- it is now wind/hail only. If the property is in a FEMA flood zone (A or V), AIUA requires flood insurance at least equal to the AIUA policy limits (with limited condo exceptions above the 2nd floor). A coastal Alabama owner pairs an AIUA wind-only policy with a separate 'ex-wind' homeowners/dwelling policy (fire, theft, liability) plus flood. There is no inland Alabama FAIR Plan; an inland hard-to-insure home is written on a full (often broader) E&S form, not wrapped over a narrow residual base policy.

How much will it cover?

The current cap on a single dwelling policy is AIUA (the Beach Pool): residential dwelling up to $650,000 (raised from $500,000 effective November 1, 2025); personal property up to 50% of the dwelling limit, i.e. up to $325,000; for a 1-4 family residential location. There is no inland Alabama FAIR Plan dwelling cap because Alabama has no separate inland FAIR Plan. (Alabama Insurance Underwriting Association, verified 2026-05-11).

Who is eligible?

AIUA (the Beach Pool): the property must be in the designated coastal area -- south of the 31st parallel in Baldwin and Mobile counties; the applicant must be unable to obtain wind/hail coverage in the private market; and the property must meet AIUA underwriting/condition standards (e.g. roof condition; flood-insurance compliance if in a FEMA zone). Alabama does not publish a fixed numeric declination count. For an inland hard-to-insure home there is no FAIR Plan -- shop the admitted market (AL DOI Consumer's Guide to Homeowners Insurance) and then, if declined, the E&S / surplus-lines market via an Alabama-licensed surplus-line broker (the surplus-lines diligent-search requirement applies).

How do you apply?

AIUA: through an AIUA-authorized Alabama-licensed agent (find-an-agent directory on aiua.org); AIUA does not sell directly to consumers. For an inland hard-to-insure home there is no FAIR Plan to apply to -- work with a licensed Alabama agent who can shop the admitted market (AL DOI Consumer's Guide to Homeowners Insurance) and, if declined, place coverage with an excess & surplus (E&S) carrier through an Alabama-licensed surplus-line broker.

Need a broker who writes the AL FAIR Plan? →

How much does it cost?

AIUA: typically more expensive than the private wind market for many coastal risks, with large hurricane percentage deductibles (multiple options; the FORTIFIED discount can reach ~35%+ on wind); for some high-risk coastal homes it can be the only option. There is no inland Alabama FAIR Plan benchmark; an inland hard-to-insure home ends up on a surplus-lines E&S form, typically more expensive than the admitted market and on narrower terms.

What is changing right now?

Two AIUA structural changes drive the current picture: (1) AIUA non-renewed all fire-coverage policies effective 2023-10-01, so it now writes wind/hail only -- a coastal Baldwin/Mobile homeowner must hold an AIUA wind/hail policy plus a separate ex-wind dwelling policy plus flood; (2) AIUA's maximum dwelling limit rose from $500,000 to $650,000 effective 2025-11-01 (contents 50% of that = $325,000). Per Insurance Information Institute FY2024 reporting, AIUA wrote roughly 18,637 policies (about 18,600 habitational + 37 commercial), with roughly $7.47 billion of exposure and roughly $43.3 million of direct premiums written. Coastal Alabama (Baldwin/Mobile) carriers continue to tighten hurricane-exposure underwriting, raise hurricane percentage deductibles, and non-renew some coastal homes -- pushing more business to AIUA -- alongside statewide homeowners rate increases. Alabama's 'Strengthen Alabama Homes' grant program (up to $10,000 to re-roof to the FORTIFIED standard) and the related mandated FORTIFIED-roof insurance discount (Alabama law requires admitted carriers to give a ~20-60% wind-premium discount by FORTIFIED level; surplus-lines carriers are not obligated) are the key structural levers. Confirm current AIUA assessment/reinsurance figures from AIUA's annual materials.

Do you also need a wrap (DIC) policy?

Required in practice for AIUA policyholders -- a wind-only AIUA policy must be paired with a separate 'ex-wind' homeowners/dwelling policy (fire, theft, liability) plus an NFIP/private flood policy if in a flood zone. There is no inland-Alabama-FAIR-Plan 'wrap/DIC' construct because there is no inland Alabama FAIR Plan; an inland hard-to-insure home is written on a full E&S form.

What to do this week if you just got a non-renewal notice

1. Read the notice fully. Note the cancellation date — that's your runway.
2. Call your current agent and ask why. Some non-renewals are reversible (a minor issue, a missed inspection); most aren't.
3. Get quotes from at least three other admitted carriers before going to the FAIR Plan. If you're rural / WUI / coastal you may strike out; that's normal.
4. If admitted carriers decline, contact a broker who writes the surplus-lines market in Alabama. They can submit on your behalf the same week.
5. Don't let coverage lapse. A lapse triggers force-placed insurance from your lender — much more expensive and worse coverage.

For the full playbook see I just got a non-renewal notice →