State Farm Seeks 47 Percent Increase
By
Associated Press
Published: Wed, March 19, 2008 - 10:18 am
Last Updated: Wednesday, March 19, 2008 - 10:24 am
Last Updated: Wednesday, March 19, 2008 - 10:24 am
potential future storm losses, State Farm, Alabama's largest
property insurer, said it will limit coverage for new policies in
Mobile and Baldwin counties beginning April 1st.
Illinois-based State Farm will no longer write wind and hail
coverage on homes south of Interstate 10 in Mobile County, and
south and west of U.S. 98 in Baldwin County.
State Farm will require a 5 percent hurricane deductible unless
a house is protected against wind in ways that few local houses now
are built. That means a policyholder would have to pay for damage
equal to 5 percent of the insured value of a house after a storm
before insurance payments would begin.
A State Farm spokesman said there will be no change for existing
policyholders unless they moved to a new house.
State Insurance Department officials said they are meeting with
State Farm. The department previously has tried to persuade
companies to ease cutbacks with limited success.
Farmers Insurance will be the largest company taking new
business without exclusions after April 1st. The California-based
insurer has added policies in Mobile and Baldwin counties to build
its market share.
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