The Alabama House of Representatives has agreed to divert more funding to Strengthen Alabama Homes, a program that fortifies houses and roofs to mitigate wind damage.
The House this week approved House Bill 39, sponsored by Rep. Chip Brown and others. If passed by the Senate and signed into law, the measure would scoop extra money left in the state Insurance Department’s budget.
Under current law, department funds that exceed 25% of the amount that was appropriated for that fiscal year are transferred to the state’s general fund. The bill would instead send that money to the wind program and would authorize the insurance commissioner to transfer even more department funding if needed.
Most of the funding for the Strengthen program already comes from fees paid by insurance companies and pays up to $10,000 per home. After inspection, homeowners receive discounts on premiums.
Rep. Mary Moore, D-Birmingham, asked in House proceedings how the Insurance Department could have leftover funds, noting that agencies often complain that they don’t have enough money, according to a local news report.
A fiscal analysis of the bill shows that the Insurance Department has, in fact, transferred several millions of dollars in recent years that were in excess of 25% of its appropriated funding. The transfers to the general fund have ranged from $2.7 million in 2015 and 2021, to almost $8 million in 2017.
The bill is now in the Senate Finance Committee.
Topics Mergers & Acquisitions Alabama
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