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 ...
They evaluate the potential for profit and loss on each single transaction. They don't use some customers to subsidize others, or some business units to subsidize others. If they did, competitors would offer better prices to the other customers. (Not always: I worked in a division of a company that made about billion dollars profit in the 1980's, another division lost about the same amount. Sigh.)
Apparently they have decided that writing homeowners policies in NJ entails much more cost and risk than opportunity. It would have to be a really large downside for them to pull out, because once you leave a market it's very difficult to reenter and I am sure the management of All-but-several-States is aware of the negative publicity withdrawing from any market will generate.
State Farm would not insure homes in Mississippi Pre-Katrina. Too many looking for arson payouts, my agent told me.
All risks need to be managed. Its called being responsible.
Those with greater assests have more risk to manage. They, especially, need insurance.
You're lucky. My husband has had them for years and never had any claims. Then we had some house damage several years ago and they refused to even come out and look at it. We talked to a construction friend who said that insurance had fixed every such problem he had ever worked on. And we had a second problem soon after and got the same treatment. We had a car accident last year and wasn't sure how to proceed. But the time they returned our phone call, the car had been prepared. There's more stories. We've paid these folks for years. Last month, I had mislaid the bill and they didn't get their check on time. We got a phone a few days later wanting us to charge it. We have nothing but contempt for these people because that's what they've shown to us, but we can't for the life of us figure out why. I have State Farm Auto and had it on my house before I got married. My experiences with them are the total opposite of ours with Allstate. We also tried to insure some personal things when my daughter studied in Europe and they made the process almost impossible. In the end, we didn't do it. We can't say enough bad things about them. I'm glad that someone has had better experience with them.
It's not that simple kimosabe. If only it were up to me to manage my own risks. It's not. State legislatures long ago took that liberty away. It's no longer your decision anymore. You will not risk X, because the legislature said you can't. Instead you will insure X because the legislature said you have to.
That's the only reason I support regulating the insurance industry. You can't have it both ways. You can't have compulsorary insurance and deregulation. That's not a free market when the state makes me by the product.
It's not that simple kimosabe. If only it were up to me to manage my own risks. It's not. State legislatures long ago took that liberty away. It's no longer your decision anymore. You will not risk X, because the legislature said you can't. Instead you will insure X because the legislature said you have to.
That's the only reason I support regulating the insurance industry. You can't have it both ways. You can't have compulsorary insurance and deregulation. That's not a free market when the state makes me by the product.
I've had Allstate ins. since we moved to Fl. 9 years ago. I was lucky to get rid of our auto policies with them & go with a much cheaper auto carrier. I don't dare try to find a cheaper homeowners policy as I don't think any exist. Even with no claims & our area does not get hit by hurricanes (knock on wood) our policy has increased 100%. They should allow all Fl insurance companies to include all policies in the country instead of just using Fl as an independent state with the premiums & losses being determined by what happens in Fl.
Delaware and Conn are also included in this.
This guy (zulu) hates WalMart too. Pretty anti-capitalism if you ask me. I think he likes to stir things up.
http://www.freerepublic.com/focus/f-news/1742735/posts?page=21#21
Allstate works great here in Ohio. Not many Lake Erie hurricanes I guess.
Auto insurance (which I know is heavily restricted) but also home insurance? Are you sure?
Lovely. /S
Excuse me? Last time I checked this nation still claims capitalism as its form of economy. Why should I help 'fight this'? Allstate as a private insurer has a right to choose who it does business with.
As soon as we can sell here in Florida I'll be doing a happy dance when I get rid of our Allstate homeowners policy.
Oh...yes; you do indeed have a choice.
You don't have to get someone else to pay for your house. Thank goodness there are banks willing to do so, but; that is their, and your choice.
As for auto insurance; the state requires that you provide evidence of financial liability/responsibility. There are several ways in which you can satisfy this necessary requirement that do not involve any insurance company.
Whether or not you pass your risk off onto an insurance company is, again, your choice.
what's wrong with the oil companies?
Allstate's the same company that fired a guy for writing (on his own time) an article critical of the homo agenda.
No legislature mandates that you insure anything. There is no "compulsorary insurance".
I can't tell. Are you talking about Allstate or State Farm? (Am curious because I have State Farm.)
IMO, this is caused by the Global Warming hysteria brought on by the alarmist MSM. I just can't believe All State swallowed the hype.
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