Key Takeaways
- Georgia uses the Georgia Underwriting Association (GUA) for hard-to-place property risks in coastal and brush areas
- The GUA provides beach and brush plans for properties unable to obtain coverage in the standard market
- Georgia requires 30 days notice for cancellation and 45 days for non-renewal of homeowners policies
- Homeowners policies cannot be cancelled after 60 days except for specific reasons
- Georgia law prohibits unfair discrimination in property insurance underwriting
Georgia Homeowners Insurance Requirements
Georgia has specific property insurance regulations and residual market mechanisms that producers must understand.
Georgia Underwriting Association (GUA)
The Georgia Underwriting Association (GUA) provides coverage for properties unable to obtain insurance in the voluntary market:
Purpose
The GUA serves as Georgia's residual market for:
- Properties in coastal areas (beach plan)
- Properties in high brush/wildfire areas (brush plan)
- Properties declined by voluntary market insurers
- Essential coverage for hard-to-place risks
Beach Plan
For coastal Georgia properties:
| Feature | Details |
|---|---|
| Coverage | Property and wind coverage |
| Territory | Coastal counties including Chatham, Glynn, McIntosh, Liberty, Camden, Bryan |
| Eligibility | Must be declined by voluntary market |
| Inspection | Property may require inspection |
| Building Standards | Must meet construction requirements |
Brush Plan
For properties in wildfire-prone areas:
| Feature | Details |
|---|---|
| Coverage | Fire and allied perils |
| Territory | Designated brush areas |
| Eligibility | Declined by voluntary market |
| Mitigation | May require defensible space |
Exam Tip: Georgia's GUA provides both beach (coastal wind) and brush (wildfire) plans, similar to California's FAIR Plan concept.
Residual Market Eligibility
To qualify for GUA coverage:
- Declination required - Must be declined by at least 2 admitted insurers
- Property inspection - May be required
- Building codes - Must meet applicable standards
- Premium payment - Typically higher than voluntary market
- Coverage limits - Subject to GUA limits
Cancellation and Non-Renewal Requirements
Georgia has strict requirements for canceling or non-renewing property insurance:
Cancellation Notice Requirements
| Reason for Cancellation | Notice Required |
|---|---|
| Non-payment of premium | 10 days |
| Fraud or misrepresentation | 30 days |
| Increase in hazard | 30 days |
| Policy in effect less than 60 days | 30 days |
| Policy in effect 60+ days | Limited reasons only |
After 60 Days - Restricted Cancellation
After a policy has been in effect for 60 days, Georgia limits cancellation to:
- Non-payment of premium
- Fraud or material misrepresentation
- Actions that substantially increase the hazard
- Violation of policy terms
Non-Renewal Notice Requirements
| Timeframe | Requirement |
|---|---|
| Standard Non-Renewal | 45 days before expiration |
| Reason Required | Must provide reason upon request |
| Filing a Claim | Cannot be sole reason for non-renewal |
Georgia Consumer Protections
- Cannot cancel/non-renew solely for filing claims
- Must provide specific reason upon request
- Right to appeal to OCI
- 10-day grace period for premium payment
Named Storm Deductibles
Georgia allows separate deductibles for hurricanes and named storms:
Deductible Options
| Type | Amount |
|---|---|
| Percentage Deductible | 1%, 2%, 5% of dwelling coverage |
| Dollar Deductible | Fixed amount |
| Application | Hurricanes and named tropical storms |
Disclosure Requirements
- Must clearly disclose hurricane deductible
- Separate from standard deductible
- Consumer acknowledgment required
- Must explain how percentage deductible applies
Flood Insurance
- Standard property policies exclude flood damage
- National Flood Insurance Program (NFIP) available
- Private flood insurance growing in Georgia
- Agents must disclose flood exclusion
What is the Georgia Underwriting Association (GUA)?
How many days notice must a Georgia insurer provide for non-renewal of a homeowners policy?