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Old 07-16-2009, 04:32 PM
 
26 posts, read 138,248 times
Reputation: 20

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To answer a few questions in general, there is legislation that is changing the way insurance is handled here. I just moved here about 9 months ago myself and was shocked at the prices. The last major hurricane to hit was Frederick in 1979. Why are the prices so high? I wish I could answer that. I watched a hurricane about two years ago come in from the coast of Ms. and end up passing through Memphis, on into Kentucky and Ohio, doing far more damage there than it did on the Gulf Coast.

Part of the problem is competition. There are only two companies writing wind/hail insurance here. Thats Geovera and the Alabama Wind Pool (AIUA). Without more competition, there is no need from these companies to limit or lower the prices. Insurance carriers can insure north of I-10 (for example Bay Minette) but not on the coast, where its needed most. For that, I blame the State Insurance Dept. It seems the insurance companies are running the state, not the other way around.

Insurance is not assured profit. There are many risks involved. Want a gaurantee?? Start a casino! a company should not be allowed to pick and choose which homes it wants to insure. It should take the high risk homes along with the low risk homes, but that is not happening here. Companies are allowed to tell the state dept which part of the state it wants to insure.
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Old 07-16-2009, 04:53 PM
 
Location: Alpharetta Ga-Loxley Al
272 posts, read 823,751 times
Reputation: 75
Quote:
Originally Posted by jasonhorn View Post
To answer a few questions in general, there is legislation that is changing the way insurance is handled here. I just moved here about 9 months ago myself and was shocked at the prices. The last major hurricane to hit was Frederick in 1979. Why are the prices so high? I wish I could answer that. I watched a hurricane about two years ago come in from the coast of Ms. and end up passing through Memphis, on into Kentucky and Ohio, doing far more damage there than it did on the Gulf Coast.

Part of the problem is competition. There are only two companies writing wind/hail insurance here. Thats Geovera and the Alabama Wind Pool (AIUA). Without more competition, there is no need from these companies to limit or lower the prices. Insurance carriers can insure north of I-10 (for example Bay Minette) but not on the coast, where its needed most. For that, I blame the State Insurance Dept. It seems the insurance companies are running the state, not the other way around.

Insurance is not assured profit. There are many risks involved. Want a gaurantee?? Start a casino! a company should not be allowed to pick and choose which homes it wants to insure. It should take the high risk homes along with the low risk homes, but that is not happening here. Companies are allowed to tell the state dept which part of the state it wants to insure.
If you live in the area from 98 in Foley to the north, including Summerdale, Robertsdale and Loxley, State Farm will write wind coverage. I'm not sure how far over toward the bay that area includes.
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Old 07-16-2009, 05:17 PM
 
26 posts, read 138,248 times
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Typically, and I cannot speak for State Farm, they will write north of I10 without the need for an overlapping wind/hail policy such as AIUA. That doesnt mean its cheap, unfortunately.
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Old 07-16-2009, 06:03 PM
 
Location: Alpharetta Ga-Loxley Al
272 posts, read 823,751 times
Reputation: 75
Quote:
Originally Posted by jasonhorn View Post
Typically, and I cannot speak for State Farm, they will write north of I10 without the need for an overlapping wind/hail policy such as AIUA. That doesnt mean its cheap, unfortunately.
No, it's not cheap, but it's cheaper than having to get the state run beach pool to provide your wind coverage. I checked with several agents for quotes and even though State Farm is expensive it ends up cheaper all together rather then being in the beach pool, with another provider covering fire etc.
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Old 07-16-2009, 06:57 PM
 
Location: Floribama
13,486 posts, read 29,425,055 times
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I use Alfa Insurance. Back after hurricane Ivan many people had problems getting their insurance companies to pay, but I didn't have a single problem with Alfa, nor did anyone I know.
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Old 07-16-2009, 07:30 PM
 
26 posts, read 138,248 times
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Alfa is a great company, very well run. AIUA is typically a last resort. Unfortunately, south of I10, its one of only two companies that write wind/hail. So yes, if you have other options, it would be best. AIUA pays ACV (Actual Cash Value) which is less than RCC (Replacement Cost Coverage). Most likely, your policy would pay RCC. Thats not to say AIUA is not good at what they do. They are typically less expensive than all other options.

Last edited by jasonhorn; 07-16-2009 at 07:58 PM..
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Old 09-03-2009, 10:26 AM
 
2 posts, read 18,636 times
Reputation: 13
Higway 98 is used as a dividing line for some companies. I am about a mile south of 98. I pay $1600 for $242,000 of insurance. 10% less if you insure your autos with them. Anybody know of a company with a better rate than that?
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Old 01-28-2010, 12:05 PM
 
26 posts, read 138,248 times
Reputation: 20
Old Farmer,

I sell this dastardly insurance for a living. I would be curious who your carrier is. Not the agency, but the actual insurance company. thats a fantastic rate!
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Old 01-28-2010, 03:15 PM
 
5 posts, read 25,220 times
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I have been curious about this very thing. I know that insurance will be higher than where we are right now because we're not close to the coast. Probably 150+ miles from there. I'm just wondering HOW much more?

Also, what neighborhoods in Foley are considered the safest and most "family-friendly"?

On another note, what's up with the AL Right of Redemption Law? It sounds as if you purchase a home that's been in foreclosure that the former owners have twelve months from the day that you purchase the home to pay everything that was in arrears and get the home back? Am I understanding this correctly?

I don't mean to hi-jack. If you'd rather PM me with any answers, that's fine, too.
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Old 02-20-2010, 08:04 PM
 
1 posts, read 13,746 times
Reputation: 13
After Fredrick in 1979 we did not have a major hurricane for 25 years. Everyone paid premiums during all that time without any claims. What happened to all the money we paid for the insurance of our homes. I think the insurance companies need to be held accountable for our money. They did not pay after the hurricanes. They are becoming rich off of our premiums.
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