“Sometimes that is enough to get the ball rolling. Don’t forget that your insurance company is probably deluged with claims and is looking at massive losses. So the have to delay in order to adjust the claims and to pay them. Allstate went from an A++ carrier to a B rated carrier after a Florida hurricane. The companies can go broke under the weight of this kind of catastrophe.”
Wouldn’t be surprised if this actually happens.
One or more companies may go bankrupt. Could hurricane Sandy do to the insurance industry, what the collapse of the subprime market did for big banking firms?
In any case, I would expect several insurance companies — even if they manage to pay off the Sandy claims in NY and NJ — to afterwards cease writing policies in both those states altogether...
That is why Allstate left Florida.