SB254 Summary

• Amends Alabama insurance code to allow commercial property owners to claim insurance premium reductions for retrofitting structures to resist hurricane and windstorm damage, effective January 1, 2016 for Baldwin and Mobile Counties and January 1, 2018 for all other counties.

• Requires insurable properties to be certified as retrofitted to Fortified Existing Homes standards (Level One, Two, or Three), Fortified Home: Highwind and Hail Standards, Fortified Commercial Standard, or other commissioner-approved mitigation programs to qualify for discounts.

• Mandates property owners maintain certification records, construction records, contractor receipts, and material receipts subject to audit by the Commissioner of Insurance before insurance adjustments become effective.

• Requires insurers to submit actuarially justified rating plans for discounts on wind coverage only, allowing flexibility in discount amounts for different mitigation standards.

• Prohibits insurers from issuing new discounts for compliance with the 2006 International Residential Code after January 1, 2018.