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Editorial: Prepare for some action on insurance

By Press-Register Editorial Board

May 25, 2010, 5:05AM

THE six gubernatorial candidates who showed up for a coastal insurance forum in Spanish Fort over the weekend got a glimpse of the human cost of the crisis in south Alabama’s homeowners’ insurance market.

More than 200 local residents attended the event, which was sponsored by the Christian Coalition of Alabama and the Homeowners Hurricane Insurance Initiative.

Christian Coalition Chairman Randy Brinson undoubtedly spoke for most of the attendees when he said, "This isn’t about people with condos on the beach. Here is a problem where average people are in danger of losing their homes" because of skyrocketing insurance premiums.

The assembled gubernatorial contenders — Robert Bentley, Bradley Byrne, Bill Johnson, Roy Moore, James Potts and Charles Taylor — certainly should be aware of the dimensions of the insurance problem.

It’s going to land squarely on the plate of the next governor, regardless of whether certain powerful north Alabama lawmakers continue to try to dismiss it as an issue only for "rich" beach lovers.

Homeowners in southwest Alabama and south Mississippi continue to suffer the after-effects of the devastating hurricane seasons in 2004 and 2005. Since 2004, the major insurers have dropped wind coverage from more than 50,000 policies in Mobile and Baldwin counties.

At least one gubernatorial candidate — Bradley Byrne, who lives in Montrose — had his wind coverage cancelled.

Alabama’s $9 billion tourism industry is in jeopardy. And it’s virtually certain that the homeowners’ insurance crunch is slowing the flow of tax revenue from Mobile and Baldwin — a total of nearly $2 billion a year.

That flow would be reduced substantially if a major hurricane hit the central Gulf Coast, creating even more turmoil in the south Alabama property owners’ insurance market.

So the next governor must be prepared to make insurance a top priority. Alabama’s chief executive should come into office with a general plan for homeowners’ insurance reform, work with lawmakers to fashion strong legislation and then push hard to overcome resistance from legislators who insist on viewing the south Alabama crisis as a "local" problem. It is an economic development issue for the entire state.

If those aspiring to lead Alabama will treat forums like the one in Spanish Fort as an educational opportunity, they will surely grasp the need for action to help distressed homeowners.

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Dan Martin
HMC Group LLC
dmartin@hmcgroupllc.com
334-868-3723
866-575-4609(F)
556 Clay Street
Post Office Box 4097
Montgomery, Alabama 36103
http://www.hmcgroupllc.com