Allstate cancels some NYC-area homeowners policies

[UpInArms]

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2006-02-06T194148Z_01_N06279214_RTRIDST_0_FINANCIAL-ALLSTATE-HURRICANES.XML

NEW YORK, Feb 6 (Reuters) - Allstate Corp. <ALL.N> said on Monday that it wasn't renewing some of its homeowners' policies in the New York City area for fears that a major hurricane could strike in the area, leaving the insurer overexposed.

The decision drew an immediate rebuke from New York State Superintendent of Insurance Howard Mills, who said he would call Allstate and other insurers in for a fact-finding hearing on Feb. 27.

Allstate, the largest publicly traded company that insures homes and cars in the U.S., has already said it wouldn't take on new home insurance in Westchester County, Long Island and the five boroughs of New York City.

Now Allstate spokesman Michael Trevino said that his company would no longer renew a percentage of existing homeowner policies in those areas.

By law an insurer can't cancel 4 percent or more of its policies in a state each year without filing formal notice, according to Mills, and Allstate hadn't done that.

...more...

[havocmom]

1. Are they canceling policies in areas MORE likely to get hurricane hit?

Or is this sorta like the airline stock thing prior to 9-11? :shrug:

[Tempest]

2. It sounds like an attempt to punish left-leaning NYC

The insurance companies own the GOP.

[bucklebone]

7. That's a little silly

They are flat out giving up premium dollars by not renewing. I don't know of any insurance company that would give up policies because they don't like the population's political views.

If that were the case, clearly, they would have gone after Berkeley, Massachusetts and Washington, DC before NYC.

[Tempest]

15. NYC policies are a drop in the bucket

It wouldn't even put a slight dent in their bottom line.

[bucklebone]

16. Then why go through the trouble?? n/t

[Tempest]

17. I couldn't tell you

I don't think like a Republican.

BTW, I wasn't completely serious in the first place.

[megatherium]

18. Don't tell me that the cabal responsible for 911 is also

capable of generating hurricanes to strike NYC. Do they have a special satellite? :grin:

[havocmom]

20. Nope, but hurricane damage would not be the only thing a company

would have to pay off on. My point is it is not about hurricanes at all if other, more hurricane ravaged cities, were not treated similarly.

I fail to see that it is something to :grin: about when an insurance company refuses to renew policies based on such a completely ridiculous pretense.

[lastliberalintexas]

22. They're threatening to

And they're telling Texas Gulf coast residents to expect to pay 3 or 4 times their current premium- if they'll renew at all.

[Lorien]

24. Lots of insurers dropped Floridians after 2004. I lost my insurance

but fortunately State Farm picked me up. The more you need it, the less chance you have of getting coverage. It's certainly true for health insurance as well.

[adarling]

3. Thats allstate's stand

are you protected?>??? hahahhaa

[MADem]

25. You're in GOOD HANDS, until they drop ya like a rock!!! n/t

[FloridaPat]

4. You should have seen how fast they canceled policies here in

Florida after Andrew. Not even sure they're in the state anymore.

[savemefromdumbya]

5. Major hurricane?

What does Allstate know that we don't?

[jsamuel]

8. Glaba Wampa

(Global Warming)

[Quakerfriend]

9. Really! It's just amazing how we begin to view things with

these rats, eh?

[megatherium]

19. My impression is that some corporations don't believe in

global warming -- petroleum and coal companies. But some companies do believe in global warming: insurance companies among them.

[unkledoug]

26. Allstate Weather Report

Time to start stocking up with plywood and screws!!!!!

[shanti]

28. thank you - it's certainly not a hurricane

...but what is it that they know?? btw, i read about this 2 months ago - the link might have it as LBN, but it's really not.

[Auntie Bush]

29. Hurricanes? Baloney! They fear a terrorist attack! Bush has warned them

[bucklebone]

6. That seems kind of odd

because NYC and the surrounding areas are not prone to hurricaines.

Being in the insurance industry myself, I could see why they wouldn't want to have too much liability centered in one geographic area. However, a hurricaine disaster seems unlikely.

The only other type of massive calamity that could hit an area that size would be a nuclear or "dirty" bomb attack. But I imagine the policy excludes those types of disasters from the policy.

Oddly though, insurance companies use all kinds of computer models to determine what are good and bad risks. Remember, by not renewing those policies and not taking on new customers, they are giving up boat loads of premium. But it's all a matter of risk to them.

[UpInArms]

10. Welcome to DU, bucklebone!

Thanks for your insight on the insurance issue de jour :hi:

[phantom power]

12. It's not likely... yet.

[bananas]

13. I crossposted to the "Environment/Energy" forum

There's already a couple of comments
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=115x41312

I also googled "nyc hurricane", and got some interesting hits:

NYC Office of Emergency Management - NYC Hurricane History
http://www.nyc.gov/html/oem/html/readynewyork/hazard_hurricane_history.html

The Great Hurricane of 1938 - Future New York Hurricanes?
http://www2.sunysuffolk.edu/mandias/38hurricane/hurricane_future.html

[alcibiades_mystery]

11. You're in good hands...

:eyes:

[bananas]

14. NY state is second only behind FL for the amount of insured coastal proper

This surprised me - CA isn't even on the chart, NY's coastline is just NYC and LI.

"Coastal New York state is second only behind Florida for the amount of insured coastal property (Insurance Institute for Property Loss Reduction (IIPLR) and Insurance Research Council, 1995) so future hurricanes may have severe economic impact."

http://www2.sunysuffolk.edu/mandias/38hurricane/hurricane_future.html

http://www2.sunysuffolk.edu.nyud.net:8090/mandias/38hurricane/insurance_bar_graph.jpg

[ConcernedCanuk]

21. I support bucklebone's scenario - more likely a terrorist attack

.
.
.

is the major concern

and it would be interesting to know what areas of NYC are being targeted by the insurance companies -

like

are they close to government buildings, nuclear stations, military installations, electrical generating systems etc?

I'd like to know if there is any sort of pattern regarding WHERE these homeowners are located in relation to possible terrorist targets -

because any thinking person with active brain cells should realize that the USA's administration's response after 911 has created MORE danger to not just the USA, but the world -

Massacring tens of thousands of innocent Iraqis just didn't seem to solve the "terrorist" problem

"Doh"

[Roland99]

23. Here's my thread in GD from a few days ago (tinfoil hat time?)

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=364&topic_id=314501

[IrishBloodEngHeart]

27. As a professional in the field,

I can tell you Allstate is incredibly overexposed in coastal areas.

there was a major hurricane in New York in the 1930s, and with the increased severity and frequency of hurricanes, there is a general belief in the next 20 years a hurricane will make it up to NY>.

[gauguin57]

30. Were they watching The Weather Channel's show this weekend?

It was called "It Could Happen Tomorrow," and it gave the worst-case scenario if a Category 3 hurricane bore down on New York City (as one did on Long Island in the late 1930s, with disastrous results).

130 mph winds whistling between skyscrapers, causing broken-window shards of glass (and other debris) to fly through the air like daggers. Huge storm-surge, two stories tall, coming up as far as 14th Street.

Bridges would be closed because of high winds ... so any attempted evacuation would be miles and hours of chaos.

It was pretty scary. Wonder if Allstate was watching. Good Hands, my Ass.