Coastal premiums in Alabama are 300% to 600% higher than other parts of the state, but hurricane losses cost less than losses from inland perils, Homeowners' Hurricane Insurance Initiative, an Alabama homeowners' group, told The Sun Herald.

According to the article, the group examined premiums and losses submitted to the state by insurance companies. Insurance company claims as a percentage of premiums paid were 50.68% for the coastal counties of Mobile and Baldwin, averaged over 10 years, compared to 92.45% for the rest of the state, according to insurance industry submissions.

When tornadoes that hit inland policyholders in 2011 were removed from the equation, losses averaged 55.25% of premiums paid for Mobile and Baldwin counties, compared with 75.6% for the rest of the state, the article says.

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