SB254 Alabama 2015 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Bill Hightower
Republican
Session: Regular Session 2015
Title: Insurance, allow owner of property, residential, and commercial, statewide to claim discount for structures retrofitted to resist storms, Secs. 27-31D-1, 27-31D-2, 27-31D-3 am'd.
Summary: SB254 lets Alabama property owners receive insurance premium discounts if they retrofit buildings to resist hurricanes and windstorms, with certification and insurer rating requirements across commercial and certain residential properties.
What This Bill Does
The bill requires insurers to offer premium discounts or rate reductions for properties that retrofit to Fortified standards or other approved mitigation methods, and for certain new constructions in hurricane-prone areas. Property owners must obtain certified inspections and keep records (certifications, receipts, etc.) that may be audited by the Insurance Commissioner. Discounts may apply to wind coverage or the entire premium depending on rate filings, and the program is phased in over time by property type and county.

Who It Affects
Commercial property owners in Baldwin and Mobile Counties (beginning 2016) and in all other Alabama counties (beginning 2018) who retrofit to Fortified or other approved standards to resist hurricane/wind damage.
Single-family residential property owners in counties other than Baldwin and Mobile (beginning 2018) who retrofit to Fortified or IRC-related standards to qualify for discounts.
Insurance companies operating in Alabama, which must offer actuarially justified discounts, may provide other premium adjustments, and must collect and share necessary documentation for audits.

Key Provisions
Mandated premium discounts or rate reductions for retrofit to Fortified Existing Homes, Fortified Home, Fortified Commercial, or other approved standards (FFSLS, FCS, or equivalent).
Certification requirement: properties must be inspected and certified as compliant with the applicable mitigation standards before the discount becomes effective.
Recordkeeping and audit: owners must keep certification and construction records; records are subject to audit by the Insurance Commissioner, and copies must be provided to insurers.
Actuarially justified rate plans: insurers must file rate plans demonstrating the discount for qualified properties; the discount may apply to wind coverage or the total premium depending on rate filings.
operative dates by property type and county: commercial property discounts start 2016 for Baldwin/Mobile and 2018 for other counties; residential discounts start 2018 for non-Baldwin/Mobile counties; after 2018, new IRC-based discounts are not required.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Insurance