The Alabama Department of Insurance published a bulletin prohibiting insurance companies from cancelling property and automobile insurance for claims caused by natural disasters or weather-related events.
The prohibition is effective January 1, 2026. Insurers may not cancel or non-renew personal or commercial property insurance policies or automobile insurance policies if the reason for cancellation is solely due to a claim arising from a catastrophe or other related cause.
Starting February 1, 2026, insurers also may not impose a premium surcharge or offer the insured the same coverage in another rating tier which would result in a higher premium, if the reason is solely due to a claim arising from a catastrophe or other related cause.
If an insurer’s rating rules are not in compliance with the bulletin by January 1, 2026, they must file an amendment to their rating manual through SERFF.
The bulletin can be found here.