Alabama bars non-renewals and surcharges based only on a catastrophe claim — wind pool included
Alabama bars non-renewals and surcharges based only on a catastrophe claim — wind pool included
2026-09-10 · Alabama · Regulation
Alabama's Insurance Commissioner has made it an unlawful trade practice to cancel, non-renew or surcharge a property policy because of a hurricane claim — and the rule expressly reaches commercial policies and the state's wind pool. For a coastal condominium association, that is the master policy.
Revised Bulletin 2025-08 was issued by Commissioner Mark Fowler on February 4, 2026, effective immediately, addressed to all property and casualty insurers admitted in Alabama.1 It replaces Bulletin 2010-10 and an earlier version of Bulletin 2025-08 issued December 15, 2025 — the revision, the bulletin says, was made “to change certain dates in response to feedback from insurers.”
Who it applies to
The scope paragraph is unusually broad, and the last clause is the one that matters on the coast:
“This Bulletin applies to all personal and commercial property and automobile insurance policies issued by insurance companies authorized to write property and casualty insurance in Alabama and by the Alabama Insurance Underwriting Association.”
Certain actions, the bulletin states, “are deemed unlawful trade practices for purposes of the Trade Practices Law, Ala. Code §§ 27-12-1 et seq.”
What is prohibited, and from when
Effective January 1, 2026 — an insurer “shall not cancel or non-renew a personal or commercial property insurance policy or automobile insurance policy if based solely on a claim arising from a catastrophe, natural disaster, acts of nature, weather-related causes, or based solely on a loss arising from an event not affecting the line of business in which the policy is placed.”
Effective for new policies written on or after March 15, 2026, and for renewals on or after May 15, 2026 — on the same “based solely on” trigger, an insurer shall not:
“(a) Apply a premium surcharge to such policy; or (b) Offer to place the coverage in another rating tier with the same insurer or place the coverage through an affiliated insurer if either such action would result in a higher premium.”
Subparagraph (b) closes the obvious workaround: moving the risk to a costlier tier or an affiliate instead of surcharging it.
A compliance deadline sat behind these: “By February 15, 2026, each insurer that has rating rules which do not comply with this Bulletin must file an amendment to its rating manual through SERFF and provide a complete updated manual in the filing.”
Keep reading with the Alabama State Pass
The rest of this analysis — what an association can actually do, the recent bills and rulings, and how Alabama compares nationally — is for subscribers. $49/month for every Alabama topic on HOA Weekly.
$49/month, $449/year, or a $19.99 day pass.
What you unlock
- What is still allowed
- What it changes for boards and managers
- The companion rule on drone and satellite photos
and 2 more sections in detail
Already a subscriber? Sign in
Recurring monthly subscription · Cancel anytime · Need help?
Related Alabama HOA Topics
Stay on top of Alabama HOA law
Every week: new Alabama legislation, court rulings, and regulatory developments affecting condos, planned communities, and property managers. Free.
No spam. Unsubscribe anytime.