Allstate Considers More Cancellations
By RANDY DIAMOND
Tampa Tribune
TAMPA - The Allstate Floridian Insurance Co. could shed 120,000 more homeowners insurance policies, company officials said.
The disclosure comes a week after Allstate announced it was shedding 120,000 homeowners insurance policies and 35,000 policies for mobile home owners, starting in November. Company officials disclosed Thursday that agents have been forwarded a new list of policyholders who could lose their insurance after the hurricane season is over.
In 2005, the state's second largest private homeowner insurer announced it was shedding 95,000 policies.
Altogether, Allstate will have terminated 370,000 policies since May 2005 if the company decides to refuse renewals for the latest group.
"No final decisions have been made," said Adam Shores, a spokesman for the insurer.
Before making a decision, Shores said Allstate would consider a number of factors, including the cost of reinsurance and the amount of hurricane activity in Florida this year. He said the company wants to minimize the potential for major hurricane losses.
"We need to better manage our risk," he said.
No timetable has been set to determine the fate of the most recently selected policies, Shores said. The insurer forwarded the list to agents before the decision in an effort to be transparent, he said. Policyholders are being told when they contact their Allstate agents that they might be refused coverage when their policies expire.
Allstate policyholders might have to seek coverage from Citizens Property Insurance Corp., the high-priced, state-sponsored insurer of last resort. Increasingly, Floridians are finding that Citizens is the only company willing to write homeowners insurance.
In its announcement last week, Allstate said it would transfer the 120,000 policyholders to a new homeowners insurer, Royal Palm, when policies expire.
The 95,000 policies that Allstate shed in 2005 went to Universal Insurance Co. of North America.
But the latest group of policyholders might not have a similar arrangement.
Allstate customer Bob Kanner of Brooksville said his agent told him that he was on the new list of customers who could be refused renewal and that Allstate would not be able to arrange coverage for him in the private insurance market.
"I never have had a claim in my five years with Allstate" said Kanner, who worries his $940 premium could triple with Citizens.
His agent, Becky Leavell, confirmed Kanner's statement, saying no replacement coverage will be provided.
Allstate spokesman Shores said he could not offer any specifics until a decision is made. "There are no answers to the questions," he said.
Tampa Tribune
TAMPA - The Allstate Floridian Insurance Co. could shed 120,000 more homeowners insurance policies, company officials said.
The disclosure comes a week after Allstate announced it was shedding 120,000 homeowners insurance policies and 35,000 policies for mobile home owners, starting in November. Company officials disclosed Thursday that agents have been forwarded a new list of policyholders who could lose their insurance after the hurricane season is over.
In 2005, the state's second largest private homeowner insurer announced it was shedding 95,000 policies.
Altogether, Allstate will have terminated 370,000 policies since May 2005 if the company decides to refuse renewals for the latest group.
"No final decisions have been made," said Adam Shores, a spokesman for the insurer.
Before making a decision, Shores said Allstate would consider a number of factors, including the cost of reinsurance and the amount of hurricane activity in Florida this year. He said the company wants to minimize the potential for major hurricane losses.
"We need to better manage our risk," he said.
No timetable has been set to determine the fate of the most recently selected policies, Shores said. The insurer forwarded the list to agents before the decision in an effort to be transparent, he said. Policyholders are being told when they contact their Allstate agents that they might be refused coverage when their policies expire.
Allstate policyholders might have to seek coverage from Citizens Property Insurance Corp., the high-priced, state-sponsored insurer of last resort. Increasingly, Floridians are finding that Citizens is the only company willing to write homeowners insurance.
In its announcement last week, Allstate said it would transfer the 120,000 policyholders to a new homeowners insurer, Royal Palm, when policies expire.
The 95,000 policies that Allstate shed in 2005 went to Universal Insurance Co. of North America.
But the latest group of policyholders might not have a similar arrangement.
Allstate customer Bob Kanner of Brooksville said his agent told him that he was on the new list of customers who could be refused renewal and that Allstate would not be able to arrange coverage for him in the private insurance market.
"I never have had a claim in my five years with Allstate" said Kanner, who worries his $940 premium could triple with Citizens.
His agent, Becky Leavell, confirmed Kanner's statement, saying no replacement coverage will be provided.
Allstate spokesman Shores said he could not offer any specifics until a decision is made. "There are no answers to the questions," he said.
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