The Alabama Department of Insurance approved premiums
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The Alabama Department of Insurance approved premiums for coastal counties that are 4 times higher than the rest of the state, even though it had no proof that Mobile and Baldwin losses were higher!. Where’s the. ?. Rep. Joe Faust and the Homeowners Hurricane Insurance Initiative (HHII)

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The Alabama Department of Insurance approved premiums

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The alabama department of insurance approved premiums

The Alabama Department of Insurance approved premiums

for coastal counties that are 4 times higher than the rest of the state,

even though it had no proof

that Mobile and Baldwin losses were higher!

Where’s the

?


The alabama department of insurance approved premiums

Rep. Joe Faust and the

Homeowners Hurricane Insurance Initiative (HHII)

authored the

Alabama Clarity Law.

It requires collection of Alabama insurance claims and premiums data by zip code and county.

Sen. Trip Pittman and our coastal legislators

passed the law in 2012.

Its 10 years of data came online Nov. 27, 2013


The alabama department of insurance approved premiums

When counties are compared Mobile and Baldwin are in the bottom-third

Alabama counties with the least amount of losses

2006

2007

2008

2009

2006: Mobile in bottom third; Baldwin third lowest

2007: Mobile in bottom third; Baldwin eighth lowest

2008: Mobile in bottom sixth; Baldwin WITH LEAST LOSSES in state

2009: Mobile and Baldwin in the bottom six(the year of Tropical Storm Ida)


The alabama department of insurance approved premiums

Bottom-third Alabama Counties with the least amount of losses

2010

2011

2012

2010: Mobile in bottom ten; Baldwin in WITH LEAST LOSSES in state

2011: Mobile third lowest; Baldwin second lowest

2012: Mobile in bottom fourth; Baldwin WITH LEAST LOSSES in state

(NOTE: 2012 was the year of Mobile’s Christmas tornados)


The alabama department of insurance approved premiums

The coastal counties did

NOT

have the highest losses even in the years of the hurricanes.

During Hurricane Ivan, 12 inland counties had more proportional damage than Mobile County: Escambia, Monroe, Conecuh, Clarke, Wilcox, Washington, Butler, Covington, Lowndes, Choctaw, Marengo and Perry.

During Hurricane Ivan, 7 inland counties had more proportional damage than Baldwin: Washington, Escambia, Choctaw, Sumter, Clarke, Pike and Greene.


The alabama department of insurance approved premiums

Ivan - 2004

ALL the counties in bluecost insurance companies

money that year.


The alabama department of insurance approved premiums

Katrina -2005

All the counties in blue cost insurance companies money.


The alabama department of insurance approved premiums

When premiums and deductibles were

at the state average,

HALF the cost of the hurricanes were paid

with premiums collected in the

same year as the storms.

Hurricane Ivan losses . . . . . . . . . . . . . $312 million

Katrina losses . . . . . . . . . . . . . . . . . . $276 million

Combined coastal losses. . . . . . . . . . .$588 million

Coastal premiums in 2004 & 05 totaled . . . $275 million


The alabama department of insurance approved premiums

  • SouthAlabama’s coastal counties havelower losses per policythan the rest of the state because:

  • -- hurricanes do significant damage

  • statewide

  • -- upstate tornados and hail do

  • extensive damage inland


The alabama department of insurance approved premiums

The coastal counties did not

suffer 4 times more in losses than the rest of the state.

They have had LESS.

YET. . .

the Department of Insurance decided to allow companies to charge coastal counties

4 times more.

$1,384

Premium

$786 Premium

All of State

Coastal Counties

State excluding coast


The alabama department of insurance approved premiums

  • Alabama statute says that rates must not be:

  • * Excessive

  • * Inadequate

  • * Unfairly discriminatory

ALABAMA RATE STATUTES

The average price for homeowners insurance around the rest of the state is $950!

It is time for the Department of Insurance to halt the unfair discrimination against Alabama’s coastal counties.

As in the decades before 2006, we should pay the state average. Less actually.


The alabama department of insurance approved premiums

HHII asks the public to

-- Go to the Homeowners

Hurricane Insurance

Initiative (HHII) website & join the Groundswell!

-- Receive updates by email

-- Learn about the solutions

www.hhii.us


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