ALFA ANNOUNCES POLICY CHANGES FOR MOBILE AND BALDWIN COUNTIES
Statement by Lee Ellis,
Executive Vice President, Alfa Insurance Company
MONTGOMERY, Ala. -- Due to the large exposure Alfa has in a hurricane-prone area, it has become necessary to make changes in some Alfa homeowner policies in Mobile and Baldwin counties. It was a very difficult decision to make but it was necessary in order for us to continue to offer homeowner insurance in this area. Alfa is committed to provide fair coverage at an equitable price to all counties in Alabama.
Alfa will continue to offer coverage to all its customers in Mobile and Baldwin counties. Those nearest the water, less than 1 percent of Alfa policyholders statewide, will need to purchase wind coverage from the Alabama Insurance Underwriting Association, much like flood coverage is purchased through the National Flood Insurance Program.
The 2,300 homeowners located nearest the water that will be affected in the two counties, will receive a 65 percent reduction in their base homeowners premium since wind coverage will be excluded. These homeowners will be notified by mail approximately 60 days prior to the expiration date of their current policy.
Our primary concern is to service our existing customers. Because Alfa has a much larger share of the market in these two counties than we do in the rest of the state, we are taking steps to control our growth in Mobile and Baldwin counties. Alfa, as well as other companies, continually monitor their exposure and market share.