Posted on 12/08/2006 6:17:12 AM PST by Hydroshock
NEW YORK - Allstate Corp., the largest publicly traded U.S. home and auto insurer, said Thursday it will stop writing new homeowner policies in New Jersey on Feb. 5, citing concern a hurricane might strike the state.
The state's second-largest home insurer after State Farm said the change will not affect 230,000 homeowners who already have policies with the company.
Allstate will no longer write new policies for owners of homes, condominiums, mobile homes and landlords. It said it will also not renew policies for about 300 commercial customers in eight coastal counties.
(Excerpt) Read more at msnbc.msn.com ...
Allstate already does in FL. They haven't written new policies in years and they are dropping more and more homeowners every year. All because of hurricane threats.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus
I am skeptical of the insurance companies is all. They apparently do only want people who will never need their services. Which is fine for them, it's their right, but I think they gouge alot of us whenever possible.
They aren't planning on lowering rates I bet. Since they are eliminating risky clients, the savings are going to profit or the other consumers left?
....Will the rates go down to reflect their savings.....
Of course they will go down. That's the way markets work. Competative pressure will move rates down
Yes, I know.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus
And used car salesmen.
Right... I was asking if AllState was in the Mass. Homeowner's Insurance market.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus
Most states require that you provide evidence of financial responsibility. Insurance is only one of several acceptable methods of doing so.
No state requires/mandates that you carry auto insurance.
Mass? Maine?
There are a number of "M" states.
What amazes me is that these people don't realize how much it costs them over time. When a pad today comes back at a greater amount over the next twenty years. There is something to say for morality.
My All State agent is a woman who was once a husband and father and beer drinking buddy of mine. We served as Jaycee directors together and his wife and kids came to the appropriate gatherings.
She is now quite prosperous and when I inadvertantly call her by her man's name she doesn't bat an eye.
This is true, and if someone (government) is mucking up the free market for insurance, it will cause these kinds of problems.
However, insurance companies have an additional problem. They need to spread out their risks, so that no single disaster can affect too large a portion of their client base. This is probably the problem here. Allstate may have too much market penetration in New Jersey.
Of course, there's another way around this problem, it's called reinsurance. That's where an insurance company, that insures other insurance companies, takes on a targeted portion of the risk, to mitigate exactly this kind of problem.
I wonder why Allstate isn't just getting reinsurance for some portion of their home portfolio in New Jersey. Probably government interference.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus
Spread out the risk and reinsurance are the traditional models. Now insurance companies also like to cherry pick their customers.
My parents had their insurance canceled when their German Shepard wouldn't allow a snooping company rep in the fenced backyard. The rep had no appointment, no one was home, he just showed up for a look around.
The government conveniently decided the slaughter on 9-11-01 wasn't an act of war.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus
That may be true, but you can choose not to do business with a bad insurance company.
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