Commissioners Discuss Insurance Crisis

Gulf Coast residents hoped to get answers at a public insurance hearing but ended up leaving with more questions.

by Jessica Taloney

Published: Mon, September 24, 2007 - 5:11 pm CST Last Updated: Mon, September 24, 2007 - 5:33 pm CST

Sky rocketing premiums and non-renewal notices are two things people on the gulf coast have dealt with over the last two years.
Since Hurricane Katrina, hundreds of people have either lost their homeowners insurance or forked out a lot more money to pay for it.
"They're telling me they're not going to renew me in January because I do not have a car policy with them," said Sue Hardy, who received a non-renewal notice last month from Allstate Insurance.
"I haven't had any claims. I have good credit. I'm a good customer," she says.
Hardy is one of dozens of people who attended a public insurance forum hosted Monday by Insurance Commissioners from six states and one territory including: Alabama, Mississippi, Florida, Louisiana, Arkansas, South Carolina and the Virgin Islands.
"The insurance industry is just a very complex industry," said Alabama Commissioner Walter Bell, who says what many are calling an insurance crisis is about more than just rates going up and down.
"We didn't expect to have all the answers today. We know there's not any one particular answer," he said.
During the last hour of the hearing, the public was allowed to ask questions. But, instead of standing up and addressing the panel, they had to write them on pieces of paper.
"I question how much public input they really wanted," said Teresa Bettis of the Center for Fair Housing.
"I'm hoping to hear more positive information than what I've heard so far," she said.

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limpy Says:

Mon, Sep 24, 2007 at 9:17 pm

I live 6 miles NORTH of Saraland, have had no hurricane damage and my policy will not be renewed by Allstate. Last year it went up by $1000.00. $2200 on $186,000.00 coverage. Other insurance companies want to insure it for $215,000.00 and policy amounts in excess of $2400.00 with 3% hurricane deductible. This is getting out of control. I live on social security and if this continues I may have to sell out and move inland just so I can afford homeowner’s insurance

I think that if Allstate or any other insurance company is licensed to do business in Alabama they should have to cover home owners in all of Alabama, not just the areas that have few claims.

Lindie Says:

Mon, Sep 24, 2007 at 8:49 pm

I meant to type, mari, not Angie.

mari, be thankful that State Farm renewed your policy.

Lindie Says:

Mon, Sep 24, 2007 at 8:48 pm

The insurance industry needs to be regulated. That is why they continue to get away with what they get away with.

They are raising rates for those who live south of I-10. I guess tornadoes, earthquakes and floods do not affect inland areas who DO NOT pay what we are having to pay.

Angie, be thankful your deductible is only 1%. Most people pay a 5% deductible.

mari Says:

Mon, Sep 24, 2007 at 7:35 pm

We live in Theodore north of HWY 90 but south of I-10. Our home is well above sealevel and not in a flood area. Our homeowners insurance premiums have more than tripled. Our regular deductable has gone from $500 to 1% of the insured value of the home ($150,000). The hurricane deductable is 2% of the value. We are over 20 miles from the Bay or Gulf. My agant told me that our rates went up because we live south of I-10. Worse is that our auto insurance has also tripled. My agent told me that this is because rates are grouped by zip code and some parts of this zip have a very high claim rate. Yes, I wish we could afford to do something else, but what. We have been with State Farm for 39 years and have had all our policies with them for the whole time. Go figure.

angie b Says:

Mon, Sep 24, 2007 at 7:28 pm

I have coverage with USF & G. That’s why I’m paying 317% more than I was with Allstate.
Angie B.

JDMKM Says:

Mon, Sep 24, 2007 at 6:33 pm

Coverage is available, it just may be higher than you expected to pay. Ms Hardy should call her agent and ask for other options, such as Geovera, formally known as USF&G;.

angie b Says:

Mon, Sep 24, 2007 at 5:32 pm

I live in Grand Bay. I am not close to the beach. Allstate insurance terminated my home owner’s insurance because I live south of Hwy 90 & I do not have an automobile policy . My insurance premiums rose 317%. We were paying more a month for insurance premiums than for our mortgage. This has forced my family to sell our home. Our house was built on land given to me by my grandparent’s. We built this house 3 years ago. We are moving out of our house this week. This has truly broke our hearts.
Angie B.