Alabama homeowners, especially those with landlord and farm policies, will be seeing insurance rates that are about 20% higher if their coverage is through Alfa Mutual Group.
According to the Alabama state actuary, Charles Angell, this increase is not designed to account for losses caused by a spate of tornadoes which struck the state last April. In fact, he says, all insurers in Alabama will be able to offset only a fraction of such losses via upcoming rate requests.
Nevertheless, according to Alfa spokesperson Jeff Helms, the increase in the severity and frequency of such storms is putting pressure on insurance rates.
Alfa is an affiliate of the Alabama Farmers Federation, and the new, higher rates actually went into effect on September 1st.
Charles Angell insists that his calculations support the rate hike.