Alabama HOA and condo insurance, where the condo statute sets an 80 percent floor and the Gulf Coast sets the price. The 35-8A-313 actual-cash-value minimum sits below the lender replacement-cost bar

For condominiums, Alabama Code Section 35-8A-313, the insurance section of the Alabama Uniform Condominium Act, requires the association to maintain property insurance on the common elements against all risks of direct physical loss commonly insured against, in a total amount, after application of deductibles, of not less than the greater of 80 percent of the actual cash value of the insured property at the time the insurance is purchased or such greater percentage as is necessary to prevent the application of any co-insurance provision, exclusive of land, excavations, foundations, and other normally excluded items. The same section requires liability insurance, including medical payments coverage, in an amount determined by the board but not less than any amount specified in the declaration.

The 80 percent actual-cash-value floor is the key practitioner point. It sits below the 100 percent replacement-cost standard the Fannie Mae Selling Guide (section B7-3) requires for a conventional loan to be warrantable. An Alabama condominium association can satisfy Section 35-8A-313 and still fail a lender insurance review, so the property program should be sized to replacement cost and the lender bar, not to the statutory minimum, and written on a replacement-cost rather than an actual-cash-value basis.

Two limits are worth flagging. Section 35-8A-313 sets no fidelity-bond requirement, so a fidelity or crime bond in Alabama is a governing-document and best-practice decision rather than a statutory one, and it is still worth carrying against reserve and assessment balances. And the Uniform Condominium Act insurance section governs condominiums, not single-family planned communities, whose insurance obligations run through the declaration rather than a parallel statute.