Homeowners Insurance is one of the major issues at the heart of many residents of the Gulf Coast this year and for good reason, it’s too darn expensive. While there are some decent ideas floating around Montgomery on how we can control outrageous premiums, there is also a lot of smoke and mirrors going on too. One such case of smoke and mirrors are the three Bills (HB248, HB249 & HB250) introduced by my incumbent opponent Mr. Faust, an insurance salesman himself.

The Bills vary on the amount insurance companies are allowed to raise your premiums, which on the surface seems like a fairly good deal. The highest rate insurance companies can increase your premiums under the three Bills is no more that 100 percent per thousand sold, but the devil is in the details or should I say lack thereof.

First let’s read the ENTIRE Bill as filed by Mr. Faust.

HB250
“Notwithstanding any other provision of law, homeowners insurance coverage provided for a primary residence shall be all-risk and shall be sold at not more than 100 percent difference in premium rate per thousand sold throughout the state, without regard to the actual physical location of the residence.”

Sounds fairly good when you read it on the surface but the key is in the words “all-risk”. An all-risk policy doesn’t mean it covers ALL types of disasters, especially here on the Gulf Coast. The Bill leaves out the wording required to ensure that the “all-risk” policies you are offered do not exclude wind and flood coverage, like the majority do for our residents.

So in essence, the three Bills introduced by incumbent Joe Faust do nothing for the residents of the Gulf Coast or our district, period. It’s just smoke and mirrors.