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Alabama Extends Application of Mitigation Discounts UPDATED Dec. 17

June 10, 2015 AAIS Advisory notice

Dec. 17 UPDATE: Another bulletin from the Alabama Department of Insurance states there will be a delay until the first quarter of 2016 in issuing new benchmarks for insurance discounts for windstorm damage mitigation. The bulletin explains that all the data needed to establish the benchmarks has not been acquired, but that all other provisions of the September bulletin (see below) remain in effect.


Sept. 23 UPDATE: A recent bulletin from the Alabama Department of Insurance states that the department has completed its analysis of the state's latest law regarding wind mitigation discounts, and announces that it will be promulgating new factors at some point during the fourth quarter of 2015. Upon receipt of these factors, AAIS will review them and make necessary filings.
uly 14 UPDATE: AAIS has been notified by the Alabama Department of Insurance that, although the windstorm mitigation discounts referenced below are supposed to go into effect Jan. 1, 2016, AAIS and insurers do not have to make filings until the department has completed its study to price the discounts. AAIS affiliates in affected lines will be notified by bulletin of filing action.
A new law in Alabama extends the application of mandatory windstorm mitigation discounts and/or rate reductions in that state.

Currently, insurers are required to provide discounts or rate reductions on property insurance for single-family residences in Baldwin and Mobile counties that are built or retrofitted to meet standards for windstorm resistance as promulgated in two codes:

  • The 2006 International Residential Code (IRC) of the International Code Council; and
  •  The Fortified Home Standards developed by the Insurance Institute for Business and Home Safety (IBHS).

Under the new law, premium reductions are to be available to commercial structures in Baldwin and Mobile counties that are built or retrofitted to the IBHS's new Fortified Commercial Standard.That requirement takes effect on Jan. 1, 2016 for new or renewal policies that take effect on or after that date.

Two years later, premium reductions for residential or commercial properties that meet applicable IBHS codes must be available in all Alabama counties on policies that take effect on or after Jan. 1, 2018. (The Fortified Home Standards have been been supplanted by successor IBHS codes named in the law.)

Also, after Jan. 1, 2018, insurers in Alabama will no longer be required to provide premium discounts or credits to homes built only to the standards of the 2006 IRC.

AAIS affiliates for programs in affected lines will be notified by bulletin of upcoming filing action.


AAIS Advisory notices are posted periodically to announce AAIS product developments, and to provide news items that are relevant to our program users. Advisory notices are news summaries that paraphrase documents which should be consulted directly for complete, authoritative information. 

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