Rumors that several insurance companies plan to drop hurricane coverage in Mobile, Ala. has consumers abuzz and requests being made to the Alabama Legislature to do something to prevent homeowners from losing their coverage.
Sen. Gary Tanner, D-Theodore, disclosed recent discussions with Mobile County legislators and Alfa Insurance of Montgomery, Ala., during which the insurer supposedly revealed plans to discontinue coverage in Mobile and Baldwin counties and to increase deductibles elsewhere in Alabama. Tanner said Allstate has similar plans, but a spokesperson for the company said it has not discontinued coverage.
With damage estimates of $10 billion in Alabama, Sen. Tanner told the Mobile Register that Alfa was spooked by what could have happened if Hurricane Ivan hadn’t jogged to the east at the last minute.
Tanner doesn’t think the the Alabama Legislature can address the problem immediately, because the session already is well under way. But he suggests that Gov. Bob Riley and legislators should press Alfa and other insurers for a one-year moratorium on any substantial changes, giving the Legislature time to study options ensuring that coastal homeowners have access to affordable hurricane coverage.
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