It is reasonable and good common sense to expect Alabama’s corporate community to step up to the plate, pitch in and do its share — after all, many have to depend on the residents of Alabama for their business. The homeowner-insurance companies in Alabama should make an extra effort to be there when they are needed, providing the protection their policyholders have paid premiums for over the years.
Yet, ALFA Insurance, the state’s second largest home insurer, announced June 3 that it will not be renewing homeowner coverage on one of every six current policies. This amounts to some 73,000 policy holders who will be without coverage, leaving ALFA with about 330,000 customers. ALFA executives have acknowledged that this action is a direct result of Alabama’s April 27 storms with claims estimated to be $450 million.
This is a company that has for years solicited homeowners’ business, yet, when we have an act of nature — which is the very reason we pay premiums— ALFA cuts and runs to maximize profits.
The bottom line: Alabama does not want or need such companies. The public needs to let the executives of ALFA know how they feel about ALFA’s behavior. ALFA must remember it is not the only company in the state.
James W. Anderson