New Alabama Commissioner Ridling Looking at Coastal Options

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Alabama Gov. Bob Riley’s new insurance commissioner said the administration is considering its options to help coastal property owners struggling with high premiums and lost coverage in the wake of hurricanes, including possible state assistance.

Insurance Commissioner Jim Ridling, appointed in September, spoke at a recent public meeting in Theodore that drew about 200 people.

Ridling said one possible option would be to provide state subsidies to help residents cover high deductibles. He released no specific details, however, and said that route could be difficult.

“I’m a capitalist, and I believe in letting markets run, but when it doesn’t work, you have to look at some other things,” Ridling said.

Ridling said spending state money to help coastal residents pay for insurance would be resisted by the rest of the state.

“The subsidy road is a fairly slippery slope and it will not be an easy road to get things done,” Ridling said.

He also indicated that the state would consider giving tax credits or rebates to Mobile and Baldwin residents whose rates are much higher than statewide averages.

During the Theodore public hearing, people complained that they were being forced to buy auto and other policies to keep or gain homeowners coverage. Former Insurance Commissioner Walter Bell outlawed such practices in February, and Ridling promised to look into the issue.

There were also complaints that companies were charging larger amounts for policies that don’t cover wind damage than people farther north of the coast are paying for comprehensive policies.