Allstate dropped our wind coverage....what is "wind pool"? - CatAdjuster.org - An Adjuster to Adjuster Community - Catastrophe Central, The Adjuster's Forum - General Discussions

Allstate dropped our wind coverage....what is "wind pool"?

Last Post 16 Aug 2008 04:05 PM by Jud Gardner. 7 Replies.

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Sandra Cushway User is Offline

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12 Aug 2008 02:35 AM
How does "wind pool" work and how do I get coverage for wind damage. I live near Mobile Bay, not in a flood zone. Just concerned about wind damage in the event of a hurricane. Need a better understanding of what "wind pool" is and how it works for residential home owners. We have a brick home in Daphne, Alabama, approximately 30 yoa that has never sustained any hurrican damage. Any insight would be appreciated. Sandi

Bob Harvey User is Offline

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Posts:440

12 Aug 2008 02:43 AM
Did you talk to your Insurance Agent about your questions?

Sandra Cushway User is Offline

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12 Aug 2008 02:48 AM
They simply canceled our "wind coverage" and said they would not reinstate in our area. Looking for alternatives or recourse. Sandi

Mike Kunze User is Offline

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Posts:492

12 Aug 2008 03:47 AM
Apparently your carrier decided to stop writing coverage in your zip code, as well as non-renewing existing policyholders. Guess I'd start checking the yellow pages & calling several independent agents to get quotes......and maybe pretty quick. When does your current policy expire, and how much time do you have? Maybe that will be a clue as to when the next hurricane hits...kinda like the warranty running out on your car, ya know??? Please let us all know so we can be ready to respond to the hurricane that is going to hit your neighborhood, although I hope that is not the case.

R .D. Hood User is Offline

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12 Aug 2008 04:06 AM
A "wind pool" is a state sanctioned entity that provides coverage to those whom have had their policies canceled by a carrier. It is basically a self insured entity that guarantees COVERAGE TO THEIR INSURED and also has the ability to assess every carrier for and excess of the wind pool assets. In FL it is Citizens Insurance Company, In Mississippi and Louisiana it is backed by a known carrier, such as Audobon. It is an insurer of last resort, and normally not subject to the rates imposed on sanctioned or admitted carriers. Follw the above advice, seek additional coverage and protest, in writing, return receipt requested,the dropping of your coverage by the present carrier, which may give you an additional amount of time to find another carrier.

"Anyone who has never made a mistake has never tried anything new... Albert Einstein"

Les Lammers User is Offline

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12 Aug 2008 12:30 PM
I am 99% sure you will be getting a wind policy underwritten here: http://www.alabamabeachpool.org/pages/basic_coverage

Tim Johnson User is Offline

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Posts:96

12 Aug 2008 12:55 PM
The Mississippi Wind Underwriter's Association was formed many years ago due to all carriers refusing to write wind / hail coverge for the six most southern counties in Mississippi. If you live outside those six counties then you have to obtain coverage through the Mississippi Fair Plan, the same thing, just a little different. Both plans are administered by the same organization, whom ever they may be at the time. When Katrina hit the plan was being administered by the Audobon, a company that was owned at the time by AIG. The Audobon is since gone and AIG no longer has the contract to be the MWUA's TPA. The Audobon being gone had nothing to do with Katrina, it was in the works before the storm hit. As far as where does the claims / LAE money come from? The State of Missippi pays the first $10 mil, the re-insurers, (Canadadian and Europeon) pay the next $75 mil. Everything above that is paid by every property insurer admitted to do business in the State on a pro-rated basis. The MWUA put out an RFP last year and it was awarded to some outfit out of Denver.

Tim Johnson

Jud Gardner User is Offline

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16 Aug 2008 04:05 PM
Several of my neighbors and I have Farmers Ins. in Daphne as they still write below the I-10 corridor along with State Farm in some cases. Shop around before going with the wind pool due to hefty premiums. There's a reason they call it the carrier of last resort... Oh, and you better hurry, because Fay's a-coming. If there's a storm out there, there's usually a moratorium against issuing new policies. When I worked for Audubon Insurance Group in Louisiana, I remember there was an additional surcharge added on to the highest rate available. That's not saying anything for the AL windpool as some pools are for profit and not for profit. That issue alone can change the game significantly. By the way, they're no longer in business as the real AIG closed down that subsidiary of theirs a few years back.

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