By Alfa, Allstate to end wind coverage on Ala coast
Mobile, AL – - Alabama's insurance commissioner says
Allstate Corp. and Alfa Mutual plan to drop wind coverage on 14,000
homeowner policies in Alabama's two coastal counties over the next
18 months.
The cuts will affect as many as 7 percent of the homeowners in
Mobile and Baldwin counties. Wind coverage has become increasingly
difficult to obtain on Alabama's coast since the area was hit by
Hurricane Ivan in 2004.
Insurance Commissioner Jim Ridling told the Press-Register that
Allstate is withdrawing because state regulators refused to allow
the company to raise rates as high as it wanted. An Alfa spokesman
says the company has too much money at risk if a hurricane hits
Alabama.