Insurance is going to be harder to find and more expensive for vacation home, condo, and vacation rental property owners along the Alabama Gulf Coast. The news this morning is that State Farm has decided not to renew policies for about 2600 homes within 1000 feet of the Alabama coast line.
State Farm will send a letter to all affected policyholders informing them of the decision. When each affected policy comes to within 60 days of expiration another letter will be sent to confirm the individual policy will not be renewed.
State Farm underwrites about 30% of the policies in Alabama, making them the largest homeowners insurancer in the state. Alfa Insurance Co.is the second largest inusurer. Allstate is the third largest. Together these three companies underwrite a little over 60% of the states homeowners policies. All three of these companies have now either dropped coverage for properties along the coast or have announced plans to drop coverage.