Insurance Update: Allstate says no new homeowners policies in New Jersey

somestates

(image from nolevee.com… like the Onion for NOLA)

This was predictable…

New Jersey’s No. 2 home insurance provider, Allstate Insurance Co., plans to stop selling new policies in the state because of worries it could be hit with big payouts if a hurricane lashes the Garden State.

Allstate, which insures roughly 230,000 homeowners and is behind only State Farm Insurance in New Jersey, will halt all new policies for homes, condominiums and mobile homes in the state as of Feb. 5.

Sheila Breeding, a spokeswoman for the Northbrook, Ill.-based insurer, said Thursday that Allstate was not totally withdrawing from the market and would continue to renew policies held by current customers.

“Given the trends of more powerful and frequent hurricanes in recent years, we decided to take this action,” Breeding said of the company’s decision not to write new business. “The scientific data we’ve reviewed over time shows there is a real potential for major damage to occur.”

Since paying nearly $6 billion in claims over damage from Hurricane Katrina and other storms in 2005, Allstate has dropped tens of thousands of policies in Florida and lower New York state and has halted new policies in coastal areas of Louisiana and Mississippi.

As a University of Pennsylvania economist said in this LA Times article…”it is an open question whether the private insurance industry will continue to insure the coastline at all.”

6 thoughts on “Insurance Update: Allstate says no new homeowners policies in New Jersey

  1. I wouldn’t say “that’s what they get for living in a hurricane-prone region.”
    I might think it, but I wouldn’t say it.

  2. Joo know what Shakespeare had hees characters say about lawyers?
    I always felt the same way about insurance companies.
    runt-of-the-litter, hind tetas-mamiento, cabrones sin juevos.
    pfui.
    so.
    E.G.N.

  3. Why the frack doesn’t it save my comments?
    What I said yesterday was, if the NJ State Insurance Commissioner, or whatever their equivalent is, had any cojones at all he’d be out there Monday morning five minutes before the opening bell with an announcement:
    The State of New Jersey revokes the right of Allstate Insurance Company to sell or advertise any product in the state, and requires immediate refund of all premiums to all customers living within the state, and transfer of that insurance to another company at Allstate’s expense.

  4. 1) Let me get it out of my system: So NOLA was the warning bell for the rest of the country? Wonder if Shrub will do anything now that Texas is in peril?
    2) Its not original on my part to point this out – suggest retracting the 2nd, 4th and 5th fingers. Sometimes you get a hand, other times you just get a finger.

  5. I can’t help see this as being a piece with ING’s “firing” up to 5% of its customers per month for being too high-maintenance, or with redlining, or with the problems low-income people have getting bank access, or historically, what happened with electrification in rural areas in the 1920s and 1930s, up until the Rural Electrification Administration.
    The “separate but equal” (hah) facilities one gets if one is effectively excluded from these services (see payday lenders and cheque-cashers) are a recipe for massive social instability.
    — Interrobang

  6. They need a new series of commercials, I think:
    If we think we might lose money by insuring your sorry ass, then you can go to hell.
    That’s Allstate’s stand.

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