Alabama Wind Pool Changes Policy on Buildings In/On Water

October 25, 2010

The Alabama Insurance Underwriting Association, that states last-resort insurer for such policies, announced on Friday that it would no longer be issuing policies for buildings built over or in water.

According to association manager Bob Groves, while they provide coverage for wind damage, they are concerned about water undermining the structure of buildings.

Current policy holders will be able to retain their coverage – even on buildings in or over the water – as long as they maintain ownership and keep their premiums current, but if the buildings are sold, the association will not cover the new owners, and if water encroaches upon a building that is currently on land, coverage will be dropped.

It is estimated that less than 400 of the 18,500 polices the association has issued will be affected by this change.