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 ...
Difficult for an insurance company to make up a billion dollar loss in a years time.
Sell your home and RENT! There is an alternative choice.
Amen. Too true.
Why don't we all just quit work and let the government pay for everything! Some folk are just stupid!
government sponsored insurance similar to the flood insurance
It makes no sense to insure bldgs in flood zones. People shouldn't build in flood zones nor build on beaches in storm areas. If they do it should be at their own risk, not mine.
How many dollars would you drop in a Las-Vegas slot machine that had this sign on it "This Is A No Win Machine."
The company also has overhead cost and again by state law, must maintain massive funds in reserve for claims.
About 30 to 40 percent of this country's population lives in a flood zonebetween rivers adn the coast.
You can purchase a $50,000 life insurance policy for five dollars per month if you're between the age of 18-35. What do you think the same policy will cost you at 60? Insurance companies must be sensible! Insurance companies charge premiums and underwrite policies based on RISK. Only a fool would invest in a sure loss! What if the government mandated the insurance company to issue a $50,000 dollar life policy to all 60 year old applicants for $5 a month -- how long would they stay in business?
Is there some reason that people don't realize the risks they take living in various places on this planet?
I mean, up here in "Da Nort" we can have F5 tornadoes and then blizzards and ice storms that can stop time for weeks on end. And of course it's not unusual for some dope to set his house on fire in the dead of winter (30 below, fire hydrants all frozen, etc.) with a space heater.
American Family Insurance dropped us a number of years ago. They no longer insure free-standing country homes. We have a well and are not on City Water from any of the three nearby towns. Of course, there's a frickin' LAKE across the road that they could pump water from if need be, but that doesn't count. *Rolleyes*
I'd say get used to the fact that it's every man for himself and plan accordingly. Just like it used to be! Wow! What a concept!
And since there's no "God" allowed anywhere anymore, there are not longer any "Acts of God." Get the connection? ;)
The fraudsters almost always have spent the money, and making
them pay back anything is impossible.
Sounds like the medicare system.
We live in a free society and this is one of the cracks.
Ever known a speeder to slow down after the 10th ticket?
The answer to the fraudulent claim problem is open ended.
How might I address the problem? I have not a clue, but I'll think about it.
Merry Christmas to All,
MaxMax.
The company I work for is still writing homeowners policies in the state of Florida (on a limited basis). Legislative law requires us to put $6000 in reserve for every homeowners policy we write in Florida. Do the math! If you pay a $1000 per year, it takes 6 years just to cover the reserve fund we must stash away on your home. Most people don't see the hidden cost of writing policies. Insurance is a highly regulated now. Any increase in premiums must be approved by the state regulatory commission and rate increase request must contain substantiated proof on the need for an increase.
Then why to they require I insure their property? No doubt they are in a better position to self-insure than I am. Perhaps a reasonable compromise could be reached - I could insure against damage I am responsible for - kind of like a security deposit - and they could carry the risk for natural disasters, fire, and liability.
But, I get your drift; Americans suck..bankers suck, insurors suck, lawyers suck, yeah..yeah..yeah. They owe you a house, and a life free of responsibility.
Now that you mention it, some bankers do suck. My husband and I got a auto loan through a bank and the bank took it upon themselves to purchase insurance for the car and charge us for it even though we had the required insurance. The issue came up annually for the duration of the loan.
When the loan was paid off, the bank refused to give us the pink slip claiming we owed for insurance. They also claimed that they had never received proof of insurance and indeed their file contained no such record. "Why can't you people understand...?" the bank manager asked.
Fortunately, the insurance broker copied us on all communication with the bank. While I sat in the manager's office with my file of letters between the bank and us, the insurance agency and the bank, I was privileged to hear the jerk on the phone instructing an employee to "stick" another customer with this charge and that.
In the end, we got the pink slip - no admission that the fault was on their end, no apology - just a we'll let it go this time because you're crazy, lady.
The "Americans suck" and "lawyers suck" is entirely a product of your own thinking as is your wierd comment about being "owed" a house" or a "life free of responsibility".
All you needed was proof that you had insurance for the period of time they took out a policy on you. The insurance company would have provided you that. In turn, the bank would have had to refund you any amount they had charged for the time you were insured.
I don't know where you live in California, but there has been plenty of construction where I live in California.
Allstate* canceled my earthquake insurance as of October 2006 (Washington State). There aren't many companies that will insure for that here anymore.
*They don't really mean that
I wonder if it's really just a hurricane they are afraid of?!
By the way, Allstate, DUH.
The insurance company not only provided us with the proof, but also the bank - over, and over again, as did we. We never paid the bank for insurance, they never gave up trying to collect.
Because you convinced them that you would exercise pride of ownership.
They are not in the real estate business; nor are they interested in a second home. They invested in you. There is no more clear a way to demonstrate that you are/are not a good investment than by protecting/ignoring that investment.
Perhaps a reasonable compromise could be reached
Perhaps. Try it. But, remember...it is you that is asking them for a favor; not the other way around.
..the bank took it upon themselves to purchase insurance for the car and charge us for it..
I bet they charged you an outrageous amount for that insurance too.
As loan collateral, the bank wisely insisted the auto be protected with insurance. Rightly, or wrongly; they obviously were of the opinion that you had failed to do so.
As with every other walk in life; there are, of course, idiots and jerks in banking. That is not an indictment of the banking industry...only that individual.
The "Americans suck" and "lawyers suck" is entirely a product of your own thinking...
It is a product...an insult...an outrage by your indictment of entire industries, staffed by your fellow Americans, of being cheats & scammers.
Again I ask; if insurors are so despicable, why do you continually choose to send them money? It is your choice.
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