Allstate to stop selling residential policies in California - Los Angeles Times

Posted: 5/11/2007 by Floyd in
6

Allstate has set a deadline of July 1st. Of this year to stop selling residential policies in California, in the last year, Allstate and other insurers have stopped writing homeowners policies in all or parts of a dozen coastal states that are regularly hit by hurricanes, and now that comes in play for California. What is going on here? Well, it's simple, the insurance companies want the premiums the public provides but they want them without any strings, speaking of premiums they are also asking for a 12% rate increase from California. Advocates for policyholders want the insurance commissioner to take a tough stance and prohibit the company from returning to the market for 10 years. Sounds like good advice, for instance, they don't want Allstate to be jumping the ship and later when things might get better, jumping back in. I would think if they don't take a stance like this the insurance companies would just be going back and forth. Allstate to stop selling residential policies in California - Los Angeles Times

6 comments:

  1. Jim says:

    Floyd, two weeks ago Allstate dropped my homeowner's insurance arbitrarily. I had been a customer more than 20 years, and the only time I made a claim was when we were hit by little storm (in Miami) called Hurricane Andrew in 1992. I'm in Daytona now, about five miles from the ocean. Although we've been hit by five or six hurricanes here, we've not made a claim.Still, we were dropped.

    Allstate had the crust to suggest another insurance company that they would be happy for their agent to administer. Unbelievable. I'll never send Allstate another thin dime.

    Now, I'm in the process of changing both my homeowner's and my auto insurance (also Allstate).

    I don't think that companies like this should be able to write auto insurance in our state when they chuck out people like me from their less profitable sectors.

  1. Floyd says:

    Right Jim, I don't think they should either. I think in the California thing they are urging the administrator to put a 10 year condition on them doing business there.

    I read how they done Florida in on their policies, it seems to me that Allstate wants to take your money but don't want any claims against them, it would be a win win situation for them.

    I did not have a home owners policy with them, but, I dropped my auto policy I had with them. I did it mostly because what I have been reading. I hope a lot of Americans will read of it and do the same.

  1. Last year I changed from Statefarm to Allstate because Statefarm was higher.

    I was angry because I've had Statefarm for a lot of years and there I was still paying more than what I am now paying with Allstate.

    I guess now I had better start looking around again... I would hate to be stuck with insurance that want pay or stop selling policies for one reason or another.

  1. Floyd says:

    Hello Larry, that is why I actually got rid of it. I mean, you never know what and if they will do? I would just not trust Allstate after all that I have read and heard concerning them and after I heard Jim's story it just don't make any sense to trust a company that does this.

  1. Jim says:

    to Let's Talk: I actually gave up on State Farm 15 years ago because after Hurricane Andrew, they refused to write policies in Dade County (Miami). I guess they're all the same.

  1. Thanks Jim for this information, I will look into Allstate as I did Statefarm too. Is there any company out there doing the right thing?