Ala. Gov. Bentley Touts New Homeowners’ Insurance Laws

Alabama’s governor is promoting new laws designed to make homeowners’ insurance more affordable after hurricanes drove up prices.

Gov. Robert Bentley, who owns a vacation home on the coast, made homeowners’ insurance an issue in his 2010 campaign. He appointed a commission to work on the issue.

“These bills will empower consumers and expand their options,” Bentley said.

One new law gives tax credits to insurance companies that write policies in certain areas of Alabama’s two coastal counties, Mobile and Baldwin.

Another allows homeowners to create “catastrophe savings accounts,” which would have tax benefits. The account could be used to cover a higher deductible on insurance.

Another new law is a “homeowner’s bill of rights,” which is supposed to help consumers understand more clearly what their policies contain.

Another law requires insurance companies to send information to the state insurance department about their policies written, premiums collected and losses due to claims. The department will make it available online by zip code, which is supposed to provide more transparency about rates.

Another law allows Alabama-based insurance companies to make new out-of-state investments, which is supposed to make operating in Alabama more attractive, Bentley said.

One of the laws allows a homeowner to cancel a roofing contract within 10 days of signing the contract if the homeowner’s insurance company says it will not cover part or all of the cost.

Another clarifies and assigns penalties for insurance fraud.