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 Mobile 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.
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