The insurance industry has a reputation for being a place where you pay more for the same coverage.
But when it comes to buying property insurance in the state of Alabama, you may be paying too much.
In fact, there may be a reason the state has been the epicenter of the state’s expensive property insurance market.
The Alabama Insurance Commissioner is set to release a report next month that will examine how much the insurance industry is paying in premiums and whether it’s time to cut some of the hefty fees and premiums.
It may also set the stage for a wave of changes in Alabama’s insurance market, which could eventually make it more affordable for the average homeowner.
The Insurance Commissioner has been asked to conduct an investigation into the state insurance industry, which is currently overseen by a bipartisan group of legislators.
“We have to do something,” said Republican Commissioner Todd Stromberg, a former Alabama insurance commissioner who is running for state attorney general.
“What’s wrong with the system is that we have to go to the Legislature and find ways to fix it.”
Alabama is one of the most expensive places to buy property insurance.
According to a recent report from the Urban Institute, Alabama paid $2,924 in premiums to property insurers in 2018, the highest amount in the country.
But Stromburg says that’s not necessarily because the state is paying too little.
The average premium for an Alabama property was $2.35 per month.
That’s well below the average nationwide of $4.08 per month, but it’s far higher than the state average of $1.65.
“I don’t know that we’re paying too many,” Stromenberg said.
Stromborn said the insurance market needs to move away from the high rates that make Alabama’s rates so expensive. “
So, it just seems to me that there are things that need to be fixed and it just needs to be done quickly.”
Stromborn said the insurance market needs to move away from the high rates that make Alabama’s rates so expensive.
“You have people that are really good at making decisions and they make their decisions based on what’s right for them,” he said.
Strombong, a Democrat, said the report will examine whether there’s enough money available to pay for insurance, including for reinsurance and property damage.
“In many instances, we have insurance policies that are written so they are only insured for the amount of property damage that they are expected to cover,” he explained.
“If we look at the reinsurance portion, it costs an additional $1 billion.
And when we look in property damage, it goes up $1,000,000.”
Alabama has been plagued by a property insurance crisis since the state legislature last year passed a bill that requires insurers to cover up to 10 percent of the damage a homeowner can expect in an accident.
Under the bill, the insurance company will cover up or more than $10,000 in property losses.
“People are looking at property damage and saying, ‘I don’ t know what to do with it,'” Strombone said.
In response, the Alabama Insurance Association has lobbied to require reinsurance, which would cover a greater portion of property losses than is currently covered by insurance.
Stomberg said the bill has failed to pass in the legislature, but the insurance commissioner will continue to push for reforms to the insurance system.
“There is a lot of talk about the reinsure bill, but I’m going to continue pushing for changes to our insurance policies, because we have too many problems in the insurance business,” Stomborn said.
According, the insurer industry has been hit hard by the financial crisis.
The American Insurance Association, a trade group representing insurance companies, says that the insurance sector lost $3.6 billion in the first quarter of 2018.
The number of insurers nationwide dropped from nearly 5.6 million in 2016 to less than 5 million in 2018.
Stomsberg said it’s not only the insurance companies that have been hit by the crisis.
“The real estate industry is going through a similar situation,” he added.
“Property damage is a very costly way to generate revenue for the insurance provider.
It’s one of our biggest revenue streams.”
The Alabama Legislature recently passed a $9.2 billion budget that included a property damage fee increase.
But the bill’s supporters say it’s too small.
“Our plan is to increase the rate of return by up to 20 percent,” Republican Senator Doug Davenport said.
Davenports plan would also allow insurance companies to offer homeowners a “reduced” rate of coverage if they can prove they are in a lower-risk property.
But even that plan has faced backlash.
“When the Legislature passed this bill, I thought it was going to provide a massive tax increase to property owners,” said Sen. Kevin Allen, a Republican who represents parts of Montgomery County. “That’s