Alabama Hurricane Insurance: Fact File
- Three of the 10 costliest hurricanes in U.S. history have impacted Alabama: Hurricane Katrina and Rita in 2005 and Hurricane Ivan in 2004. (See chart below.)
- Hurricane Ivan resulted in $1.6 billion in total flood insurance losses paid for by the National Flood Insurance Program (NFIP) (in all states). Hurricane Katrina resulted in $16 billion in total flood insurance losses paid by the NFIP (in all states).
- There were 55,264 flood insurance policies in Alabama in 2015. Standard homeowners policies typically do not cover flood damage. Flood insurance is covered by the National Flood Insurance Program.
- The number of people living in coastal areas in Alabama increased from 2010 to 2015 by 18,873 people, or 2.5 percent, to 784,657 people, according to the U.S. Census Bureau.
- The total value of insured coastal property in Alabama was $118.2 billion in 2013, accounting for 13 percent of the state’s total insurance property exposure, according to AIR Worldwide.
- 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 $5.5 billion in fiscal year 2015 up from about $3.3 billion for fiscal year 2010. The AIUA had 31,622 policies in force in fiscal year 2015 compared with 31,996 policies as of 2014.
- AIUA policies have a hurricane deductible that applies only in the event of a hurricane. The standard deductible for all other perils is $500.
Top 10 Writers Of Commercial Insurance In Alabama By Direct Premiums Written, 2015 (1)
Top 10 Writers Of Homeowners Insurance In Alabama By Direct Premiums Written, 2015 (1)
Top 10 Writers Of Private Passenger Auto Insurance In Alabama By Direct Premiums Written, 2015 (1)
Top 10 Costliest Hurricanes In The United States (1)
Estimated Value Of Insured Coastal Properties Vulnerable To Hurricanes By State, 2012 (1)
FEMA Regional Flood Fact Sheet: http://www.floodsmart.gov/floodsmart/pdfs/Region_4_Hurricane_fact_sheet_FINAL_for_web.pdf
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