New Insurance Options Provide Respite to Alabama Coastal Homeowners

The drastic increase in the number of insurance claims dented the profit margins of the various insurance carriers operating in Alabama. Should Alabama homeowners fit the bill?

Coastal homeowners in Alabama had been facing home insurance woes for quite some time. This Gulf Coast state had seen a spate of natural disasters such as tornadoes, hurricanes, severe flooding, and catastrophic tropical storms in the past few years and these had unleashed the most damage in shoreline areas like Baldwin and Mobile counties. In fact, these had not only wreaked havoc with lives, limbs, and properties but had also clouded the state of affairs in the home insurance sector.

Just Not Worth It

The drastic increase in the number of insurance claims dented the profit margins of the various insurance carriers operating in the state. The obvious result was that they either stopped renewing policies (the four largest carriers in the state had cancelled more than 50,000 policies) or raised their premium rates in order to protect their interests. The Alabama coastal homeowners were in a quagmire. But not anymore!

Big Toys

Alabama coastal homeowners can now hope to obtain comprehensive home insurance coverage that will also protect them from wind and flood damages, unlike conventional basic policies. What is more, the increased coverage by some private insurance providers will also benefit high-value homeowners who generally require more than one policy to protect their myriad assets that include, apart from their homes, fine art, jewelry and wine collections and recreational vehicles and toys such as sport boats and/or yachts.

A New Frontier

This new-found respite notwithstanding, coastal Alabama homeowners may well keep the following pointers in mind to reap the most from their insurance policies:

• Get a policy NOW. The six-month hurricane season has already officially started in the United States (although Mother Nature had been at it for quite some time) and it usually takes a month to activate a new policy. What is more, you must also remember that no insurance company will write a new policy if a storm is already active in a particular area.
• Shop for options. And this includes looking up the website of the state Department of Insurance in Alabama for government-backed agencies who may offer home insurance policies. Shopping around for policies gives you the best chance to land the most lucrative deal.
• Maximize protection against flood and wind damage. Reinforce your home to withstand and/or minimize damages from flood and wind, the most common natural causes that wreck devastation to properties in Alabama’s coastal areas. In this context, it is worth noting that the National Flood Insurance Program offers flood insurance protection for both buildings and personal properties.
• Pay premiums timely. Not making timely premium payments may cause your policy to lapse.
• Store the papers in a safe location. This is an oft-ignored piece of advice. Property owners should ensure that they store their home insurance policy papers and other documents related to their properties, like tax returns, property surveys, and titles, in some water- and fire-proof location. This practice ensures that they can retrieve these documents and claim compensation in the unfortunate event of a natural disaster.

Personal Responsibility

With the announcement that home insurance policy coverage is being extended for certain vulnerable regions in the state, Alabama coastal homeowners see a ray of light in the distant horizon! But they need to remember that they too have to work a little hard to earn and enjoy the benefits from these policies.

Do you have unanswered questions or concerns when it comes to your homeowners insurance policy? Please visit our FAQ page to find answers to common questions asked by other homeowners.