Allstate To Cancel Property Coverage In Dozen Chesapeake Bay Counties Starting February - WP

[hatrack]

Allstate plans to stop offering property insurance in nearly a dozen counties along the Chesapeake Bay starting in February. The reason: the increased risk of hurricane damage due to rising ocean temperatures, possibly caused by global warming.

According to the Baltimore Sun, Allstate is part of a growing number of insurance companies that are refusing to cover hurricane-prone areas. The trend started in Florida, which sustained millions of dollars in damage from Hurricane Andrew, and is now moving up to our neck of the woods. Nationwide Mutual Insurance decided to limit the amount of business it does in coastal areas two years ago and not do any new business in two ZIP codes near Ocean City, Md.

The counties impacted by Allstate's decision are: Calvert, Dorchester, Somerset, St. Mary's, Talbot, Wicomico and Worcester counties, and parts of Anne Arundel, Charles, Prince George's and Queen Anne's.

Suffice it to say, this is not good news for consumers. There are still plenty of insurers to choose from in Maryland. But each time a company drops out, it can mean less competition and fewer options. The other danger is that more companies will follow suit. If enough private insurers leave, consumers may have to turn to state-run insurance pools. That is what happened in Florida, Mississippi and Louisiana, where some of the state-run pools are having trouble staying afloat.

EDIT

http://blog.washingtonpost.com/thecheckout/2006/12/allstate_cuts_off_coastal_resi.html?nav=rss_blog

[bullimiami]

1. maryland and every other state should tell allstate and the other insurers

either you write all the policies you provide to all residents or none.
no more cherry picking for profit.

[BOSSHOG]

2. Similar situation in Mississippi

Companies want to pull coverage on the coast but insure the rest of the state. There is a movement a foot, insure all of the state or none of the state.

[thingfisher]

4. Allstate can't afford to insure

against things that might prove unprofitable.Insurance is one big racket for sure.

[Jon8503]

3. Hey, you know you are in good hands with Allstate; they always

take good care of their customers.\

[madrchsod]

5. get used to it

insurance companies across the globe will start dropping insurance or raising rates because of threat of increased storm damage and rising seas due to global warming. they global insurance underwriters decided several years ago that global warming is real and the long term outlook does not bode well for it to decrease. thanks to george bush, we are faced with the fact that insurance rates will not go down and insurance companies will write off most of the coastal regions across the globe. heck of a job george!

[Warpy]

6. Right, they already hit Florida

My pop was on a barrier island off the east coast there and his coverage was through Allstate. I miss him terribly, but I'm glad he didn't live to see another mad scramble for hurricane coverage at five times the cost.

This may be the best thing to happen to the coasts. That wall of ugly time share condos has got to go somehow. Lack of rebuilding funds due to lack of access to insurance will certainly help.

I'm just sad that so many homeowners will take such a huge hit.

[katmondoo]

7. They cancelled me too

4 Hurricanes and no damage, still cancelled. New company (Palm) is more than twice the cost plus they want 245.00 to begin the coverage.. I have the house up for sale.

[Warpy]

8. I unloaded my pop's house

just before the bottom dropped out of the market and about 3 months before Allstate announced the pullout. I consider myself very lucky, although I'd rather still have my pop.

It looks like those "good hands" people have their middle fingers extended.

Good luck on your sale.