What is the maximum claim amount covered by the Alabama Insurance Guaranty Association?

The maximum claim amount covered by the Alabama Insurance Guaranty Association (AIGA) is $250,000. This organization serves as a safety net for policyholders when an insurance company becomes insolvent. The AIGA protects consumers by ensuring that they can still receive a portion of their claims, up to the specified limit of $250,000 for covered claims. This limit is designed to balance consumer protection with the financial sustainability of the association. It is important for policyholders to be aware of this limit to understand the extent of their coverage in case their insurer fails. The amount exceeds certain disaster-related claims and ensures a significant level of protection for individual policyholders while promoting responsible underwriting practices among insurance providers.