Build stronger homes, bring down Mobile, Baldwin insurance rates, says Mississippi commissioner

Incentives to build stronger homes — not state subsidies — are the key to lowering insurance rates in high-risk, coastal areas, Mississippi Insurance Commissioner Mike Chaney told a panel of Alabama lawmakers Tuesday.

Chaney also emphasized the importance of enforcing building codes, limiting the number of people using the state’s insurer of last resort and requiring policyholders statewide to help pay for catastrophic hurricane damage.

“This is not a simple issue,” Chaney said. “It’s an issue that you’ve got to address with great caution.”

Chaney spoke during the second in a series of Insurance Regulations Subcommittee meetings, from which Alabama lawmakers hope to craft changes to state insurance law.