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Allstate to stop insuring new N.J. homeowners
msnbc ^ | 12-7-06

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 ...


TOPICS: Business/Economy; Miscellaneous; News/Current Events; US: New Jersey
KEYWORDS: allstate; newjersey
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To: Diana in Wisconsin
there are not longer any "Acts of God."

Just wanted to add:
I don't ever recall seeing the phrase "Acts of God" in any insurance policy.

221 posted on 12/08/2006 7:30:56 PM PST by laotzu
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To: lucysmom

Sorry... Meant to say they haven't been able to build new refineries....

C


222 posted on 12/08/2006 7:38:32 PM PST by ARA
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To: lucysmom

Yes, and used car salesmen


223 posted on 12/08/2006 8:01:05 PM PST by ZULU (Non nobis, non nobis, Domine, sed nomini tuo da gloriam. God, guts, and guns made America great.)
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To: fleagle
I have to agree, they are necessary evils. But apparently they need some control. An insurance company that uses capricious and illogical methods to set rates, like a person's education shouldn't be permitted to do business in a civilized state.

And an insurance company which refuses to underwrite a line of insurance they offer in a particular state when they want to suck up profits on other lines in that state, should likewise be banned from that state.

Pain and suffering litigation should be strictly controlled as well.

The insurance companies and trial court attorneys have played "monkey in the middle" with the American consumer far too long.
224 posted on 12/08/2006 8:05:16 PM PST by ZULU (Non nobis, non nobis, Domine, sed nomini tuo da gloriam. God, guts, and guns made America great.)
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To: chimera

Good posting.


225 posted on 12/08/2006 8:06:45 PM PST by ZULU (Non nobis, non nobis, Domine, sed nomini tuo da gloriam. God, guts, and guns made America great.)
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To: Hydroshock

Allstate wants to pick and choose who places the bets. Allstate needs to decide if it wants to be in the gambling game or not. They shouldn't be allowed to pick and choose.


226 posted on 12/08/2006 8:08:15 PM PST by DaGman
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To: Jack Black

The state has a right to regulate insurance companies - I think most of them do, if not all.

This is merely another form of regulation.

In states like Jersey, Insurance companies have waxed fat on certain lines of coverage and lost some on others. Cutting off all homeowners policies is outrageous.

Any homeowner who has had their homeowner's policy eliminated by Allstate, and who also carries auto insurance with them should also drop that.

The Insurance Companies have become far too big for their britches.

Whether its actions like this one,or refusing to insure peole who keep certain breeds of dogs, or have guns in their houses, they are out of order.


227 posted on 12/08/2006 8:10:10 PM PST by ZULU (Non nobis, non nobis, Domine, sed nomini tuo da gloriam. God, guts, and guns made America great.)
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To: Young Scholar

Perhaps not.

If thier other lines of coverage weren't so lucrative, they would be eliminating them also.


228 posted on 12/08/2006 8:11:12 PM PST by ZULU (Non nobis, non nobis, Domine, sed nomini tuo da gloriam. God, guts, and guns made America great.)
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To: laotzu
Because you convinced them that you would exercise pride of ownership.

But according to you, I don't own, the bank does.

They are not in the real estate business; nor are they interested in a second home. They invested in you.

Then why do they require insurance on the home and not on me?

There is no more clear a way to demonstrate that you are/are not a good investment than by protecting/ignoring that investment.

I am not asked to demonstrate, I am compelled to comply.

I bet they charged you an outrageous amount for that insurance too.

Yes they did, and interest also.

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.

OK, they made a mistake once - I can accept that, but over and over again? Come on - you can't really believe that - can you?

It is a product...an insult...an outrage by your indictment of entire industries, staffed by your fellow Americans, of being cheats & scammers.

Some of my fellow Americans are cheats, scamers and worse. If it were not so, we would have no need for prisons, police, or courts.

If insurance functioned as it does now, but was a branch of government would you think it was an honorable institution?

Again I ask; if insurors are so despicable, why do you continually choose to send them money? It is your choice.

Because I choose to drive without the potential complication of being cited and fined for driving without insurance. As far as insurance on a home, I can buy a home and be required to purchase insurance as a condition of the loan, or I can rent and pay the landlord's insurance. Its as much a choice as the IRS claiming that tax payment is voluntary..

229 posted on 12/08/2006 8:14:43 PM PST by lucysmom
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To: evangmlw
"New Jersey also has a very high rate of insurance fraud."


I think you could have eliminated "insurance" from that statement and it would be equally true. Frauds should be persecuted, but again, the Jersey legal system is bizarre, arcane and corrupt. The Federal Government should take over operation of the entire state and conduct a thorough investigation of all its officials, its tax system, its educational system, etc.

" People fail to understand the massive cost and impact that one major catastrophe can have on the industry."

Uhh, yeah, but the reason people HAVE insurance is to protect them from catastrophes.
230 posted on 12/08/2006 8:15:14 PM PST by ZULU (Non nobis, non nobis, Domine, sed nomini tuo da gloriam. God, guts, and guns made America great.)
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To: jammer
Why would we want to help fight it?

Where do you live? I stand by my post that anywhere in the US, there are high risks. I don't argue that insurance companies should be able to insure who they want. They provide a customer service and if the customers aren't buying they figure out and fix things.It may not affect you directly but it will with time IMO.

231 posted on 12/08/2006 9:18:00 PM PST by CindyDawg
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To: Capt. Tom

See #231


232 posted on 12/08/2006 9:19:32 PM PST by CindyDawg
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To: 3niner

see #231


233 posted on 12/08/2006 9:20:24 PM PST by CindyDawg
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To: Hydroshock

Hell, Insurance is nothing more than a legal way to scam people. When they need it after paying years on a policy they will either not pay,raise rates or cancel you.


234 posted on 12/08/2006 9:22:50 PM PST by lndrvr1972
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To: ZULU

Ugh yes, and the insurance companies must be allowed to take appropriate measures to limit their RISK in HIGH RISK areas in order to maintain sane business practices. They either make rational decisions or go BELLY-UP.


235 posted on 12/08/2006 9:49:19 PM PST by evangmlw ("God Is Definitely Conservative")
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To: DaGman

Should you be allowed to pick and choose what you do with your money? Ok for you, but not for others -- the government should decide for them I guess. You sound like a BIG LIB!


236 posted on 12/08/2006 9:53:07 PM PST by evangmlw ("God Is Definitely Conservative")
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To: ZULU

Thanks Zulu. I'm glad you got the point of my post. Insurance agencies who DO NOT insure reasonable properties/lives, and those who use suspect (illegal?) means to set rates, should be out of business.

Where's the oversight in the insurance industry?


237 posted on 12/09/2006 3:56:29 AM PST by fleagle
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To: Mamzelle

Oh, I hear you on that Mamzelle. I'm not trying to make the point that all policy holders are angels. And the kind of insurance fraud you mention hikes the rates for those of us who don't wait for a hailstorm to replace our old roofs.

I guess the answer is to have more investigators out there busting all kinds of insurance fraud, be it from the policy holders or the individual agencies or the industry itself.


238 posted on 12/09/2006 4:02:18 AM PST by fleagle
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To: Hydroshock
I would think that the "hurricane" is likely to be in the form of extreme state government regulations imposed on insurers. When a state begins to require coverage that exceeds cost, then insurers will find alternatives.

I haven't read up on Jersey's approach to home insurance, but I seem to recall some rather draconian measures by the state that caused auto insurers to pull out of the state.

239 posted on 12/09/2006 4:22:27 AM PST by meyer (Bring back the Contract with America and you'll bring back the Republican majority.)
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To: street_lawyer
my take is that based upon passed experience with Allstate, they are looking for a rate hike and need to give their people in the legislature some reason to grant it.

If that's the case, then the problem I see is that the legislature has any say in rates at all. Over-regulation.

240 posted on 12/09/2006 4:28:47 AM PST by meyer (Bring back the Contract with America and you'll bring back the Republican majority.)
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