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 ...
"The issue painfully learned down south is that insurance for homeowners in cosatal areas subject to hurricanes is simply no longer feasible."
Nonsense. If you have a million customers paying $2,000 a year for insurance thats $2,000,000,000. Thats enough to rebuild the 6,700 of the average homes. I've been here 9 years and thru 5 hurricanes with no damage.
Its about the insurance companies not having a guaranteed profit and not managing their risk properly. Otherwise known as greed.
The insurance companies want to insure only the low risk people and then leave the other people in the hight risk state pool.
Why are building codes so lax as to allow easily damaged structures?
What other business are you allowed to pawn you liability off to the taxpayer?
People who are required for one reason or another to have insurance. Not all of us can afford to self-insure but must have insurance as a condition of a mortgage for instance.
Moving can always accomplish that.
--If they can cherry pick in NJ, the next step will probably be Florida and the Gulf States.--
Florida has already been cheery picked to death.
It's not just New Jersey. I read in the WSJ the CEO of AllState just bought a beach front home in North Carolina that won't be insured by AllState either.
AllState can't handle the possible losses after the Katrina debacle.
My insurance company tried to pull the same thing after Isabel. They wouldn't even contemplate sending out an adjuster. I called them up, told them what I did for a living and promised them that the "your insurance company sucks.com" web site would be open for business by the end of the week.
The adjuster showed up the next day.
"Allstate works great here in Ohio. Not many Lake Erie hurricanes I guess"
Not many of the top beaches in the world are in Ohio either.
Been in Florida 9 years, no hurricane damage and lots of time living in a place that millions spend big $$ to visit.
"Insurance companies are among the most highly regulated companies in the US."
Yep it sure is. And who has the lobbiest in Washington working to manage that regulation in their favor? It sure isn't the average consumer.
What I find disturbing is how many people are driving without ins..If you only carry liability without uninsured motorist,you are in a situation where the other party has none,you could be in a bind.Yes it does cost all good people who do the right thing.When people want me to embellish an estimate,I get rid of them quick.Our ins.agent is employed by Allstate.He has been very good to us,including reducing our payments nineteen dollars a month,due to our driving records.There may be some reason other than what we have heard.Has there been a new law enacted that is not conducive to their business?Just curious.
They keep trial lawers in business.
That's right. You can also self-insure.
Why, on earth, do you falsely claim that "most states require you to carry a minimum liability policy".
It's also people gaming the system, I would expect.
I used to be president of a homeowner's association in my last house. We had a windstorm blow through (Santa Ana's--70 mph+) and one of the neighbor's palm trees got blown over into their roof.
They had the audacity to ask OUR HOA to pay for the damages even though he planted the tree and it was not in a common area.
He just didn't want to take the hit in premium he knew he was facing.
Glad I got out of that job.
Almost all "extended warranties" are scams. They are usually about 90% profit and 10% insurance. The profit is divided between the store that sells it to you, and the underwriter.
It is not at all unusual for the underwriter to be gone, by the time a claim is made. Even if they are still around, they will usually not spend enough to actually fix the problem, when a claim is made.
It is called 'underwriting guidelines' (read: commen sense), and they have always done that.
It is better for good drivers, like us, to not have share our risk with those who are on their fourth DWI.
I'm picking up the slack for you. No claims in 25 years (and that one wasn't my fault) but my insurance goes up every year even with the "good driver discount".
That's because of the flood and cold that will attack the area as a result of global warming just like in "The Day After Tomorrow". I saw it in a movie, so it must be true.
"And do you feel ripped off by your life insurance company as well?"
Appple to oranges. Most people buy life insurance knowing it's for their dependents, not for themselves.
That's not 100% true. The actual answer is that the "income" (premiums and investments) of the insurance company has to be greater than the "out flow" (claims payments, operating expenses, etc).
Insurance companies don't get rich off collecting premiums. They get rich off investing premiums and risk aversion.
What????
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