Alabama Insurance Company Refuses to Write New Policies on Old Homes
Several months back, I politely suggested to the Bernanke Crime Family that if housing inventory remained a huge problem, perhaps a controlled demolition would be in order. It would clean up all those nasty foreclosures, lower existing inventory and suddenly make the housing situation appear somewhat under control. We all know that's far from the case so, you know, maybe a little divine intervention is in order. And by divine I mean HAARP-contrived natural disasters, a bulldozer party and/or a Fed field trip with lighter fluid and matches. Whatever works. Hey, they did it in Detroit.
Anyway, good news out of Alabama for the housing mafia. Bad news for homeowners (via al.com):
Alfa Mutual Group, the state’s second-largest homeowners insurer, has suspended writing new policies on Alabama homes more than 10 years old, as it tries to get its hands around what are likely hundreds of millions of dollars of losses from last month’s tornadoes.
Ragan Ingram, chief of staff to Insurance Commissioner Jim Ridling, said the Montgomery-based insurer is writing only new policies on homes built since 2001. Homes built under older building codes are generally considered poorer risks.
Jeff Helms, a spokesman for the affiliate of the politically powerful Alabama Farmers Federation, would not directly confirm the move.
“As the insurance industry deals with the aftermath of this unprecedented event, Alfa is re-evaluating its risk exposure,” he said in a statement. “Alfa has seen a large number of applications for homeowners coverage following these storms, and we are taking interim steps to manage the growth of that line of business.”
In other words, if you didn't upgrade around the time dot com was just finishing up busting or after, you're out of luck. Sorry for your luck.