Frequently Asked Questions

Can consumers apply for coverage with AIUA directly?

No. To apply for coverage with AIUA, consumers must contact an AIUA Authorized Producer. Click here for a list of those producers.

back to top

Does an agent have binding authority?

No. An agent does not have any authority to bind coverage on behalf of the Association under any circumstances.

back to top

Does AIUA provide premium financing, payment/installment plans or accept credit card payments?
Who bills the mortgage company for a new application?

It is the agent's responsibility to bill the mortgage company if the premium is escrowed.

back to top

What are the AIUA Underwriting Requirements for DP-2 Replacement Cost Coverage?

Replacement Cost Value (RCV) loss settlement coverage is required when the “all other perils” policy covering the dwelling is insured on a RCV basis.  If “all other perils” policy is an ACV loss settlement policy, AIUA must insure the dwelling on an ACV basis for wind only.

Replacement cost coverage is not provided for a:

a. Unit in a condominium building, or

b. Townhouse, or

c. Mobile or manufactured home including any attached structures.

d. Roof older than 60% of its Life Expectancy. Actual Cash Value (ACV) Loss Settlement Windstorm or Hail Losses to Roof Surfacing endorsement will be included on policies insuring a dwelling with a roof older than 60% of its Life Expectancy. The ACV Loss Settlement provision will be removed upon receipt of proof that the age of the roof is less than 60% of its Life Expectancy.

e. Replacement cost coverage for Personal Property is not available.

Does AIUA insure vacant property?
Does AIUA insure farm property?
When can coverage become effective?

As of January 01, 2011 For acceptable risks with complete submissions, the policy effective date will be determined as follows:

A. New policy (no title transfer) --The effective date of a new policy shall be 12:01 am local time on the day the completed application and premium due are received in the Association Office.

B. New policy (transfer of title) -- For property real estate closings where there is a transfer of ownership of property, the Association will issue a 30-day binder with coverage effective the day of the request or the date of the closing, whichever is later. In order to qualify for this provision, the application(s), photos, copy of closing settlement statement, copy of the real estate appraisal and premium payment in full must be received by the Association prior to the expiration of the binder. The application must be accompanied with a signed copy of the closing papers.

C. New coverage / higher limits -- The effective date and waiting period for a new coverage or an increase in limits on a policy in force shall be 12:01 am local time on the date the Association receives the change request and premium due or on such later date set by the insured to conform with the reason for the change.

back to top

Are there eligibility requirements for the Mortgage Closing Binder?

Yes. It must be an originating mortgage - a transfer of ownership from a seller to a buyer (the applicant).

back to top

Does a Mobile Home Mortgage Closing Binder need to be pre-approved?

Yes. Effective October 27, 2015, binders for Mobile Homes must be "pre-approved" by AIUA. Producers should contact AIUA and describe circumstances before submission will be authorized. To aualify for a mortgage closing binder, mobile homes must be properly tied down at the insured location with certified manufactured housing commission decal affixed to the mobile home and owner occupied.

back to top

What transactions are NOT considered an originating mortgage?

Line of credit, second mortgage, refinance, construction loans, credit card with equity line of credit, any type of personal loan, 30 day notes, 60-day notes or similar instruments, or any financial arrangement that does not meet the Association's definition of originating mortgage.

back to top

How can the territory of a property be determined?

Go to the MAPS section on the AIUA website & enter the property address.

back to top

Are there any restrictions on mobile homes?

Mobile homes must be at least 8’ x 32’ in size, tie-downs installed, and proof of the Alabama Manufactured Housing Commission Installation Certification Label must be provided. Mobile homes are not eligible for DP-2 Replacement Cost Coverage. Additional information is available at Alabama Manufactured Housing Commission, (; 334-242-4036).

Is there a minimum premium?

Yes. $100 minimum premium for both residential & commercial.

back to top

What are the cancellation rules and procedures?

A.  AIUA policies may be cancelled on a pro-rata basis for the following reasons.

1.  Coverage is replaced by another Company. Satisfactory evidence must be provided to AIUA.

2.  The property is sold. Satisfactory evidence must be provided to AIUA.

           3.  There is a total loss of the property.
           4.  AIUA determines that the property is no longer insurable under the Rules and Procedures of AIUA.

B.   The effective date of Cancellation must occur within the current policy term.

C.   Cancellation for any reason other than reasons stated above shall result in a fully earned, non-refundable premium to AIUA.

back to top

Who should be contacted in the event of a loss?

The Insured can call 1-866-780-2482 to submit a claim, but we recommend that the insured also contact their servicing producer to make them aware of any claims. Click here for more information. 

back to top

Who should an Applicant/Insured contact with questions about an AIUA policy?

Applicants/Insured’s should contact their servicing producer who should be able to assist them with any questions they may have concerning their AIUA policy.

back to top

Does AIUA offer liability coverage?
Does AIUA offer Loss Assessment coverage?
Does AIUA offer Loss of Rents?

Yes. AIUA policies include limited Loss of Rents coverage. This coverage is outlined in the policy form under the section titled Other Coverages, Rental Value.

back to top

Does the Association automatically renew policies?

No. A Notice of Expiration and Offer of Coverage Invoice will be sent to the producer, insured and mortgage company (when applicable) prior to the policy expiration date.

Does AIUA require the insured to carry flood insurance?

Yes. Flood coverage is required in an amount at least equal to the AIUA policy limits or the maximum provided by the National Flood Insurance Program for those properties located in flood hazard zones A or V.

back to top

Does AIUA require proof of flood coverage for condominiums if the condo association has flood coverage for the entire building?

Yes. The condo association only covers the exterior walls, therefore, flood coverage is required for the inside walls and contents unless the condo unit is located above the second level of any multi-level building.

back to top

Is property located in areas protected by Coastal barrier Resources Act (CBRA) eligible for coverage with AIUA?
Can a policy be issued when there is a storm in the Gulf of Mexico?

Under no circumstances will AIUA issue a policy in the event that a named storm has been declared by the NOAA (National Hurricane Center) to be within 80 degrees W Longitude and 20 degrees N Latitude or a Tropical Storm Watch/Warning has been declared for Baldwin and/or Mobile County. E-Commerce will be closed for new business applications and binders and will remain closed until 24 hours after the storm dissipates and all watches/warnings have been lifted.

back to top