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Allstate to stop insuring new N.J. homeowners
msnbc ^ | 12-7-06

Posted on 12/08/2006 6:17:12 AM PST by Hydroshock

NEW YORK - Allstate Corp., the largest publicly traded U.S. home and auto insurer, said Thursday it will stop writing new homeowner policies in New Jersey on Feb. 5, citing concern a hurricane might strike the state.

The state's second-largest home insurer after State Farm said the change will not affect 230,000 homeowners who already have policies with the company.

Allstate will no longer write new policies for owners of homes, condominiums, mobile homes and landlords. It said it will also not renew policies for about 300 commercial customers in eight coastal counties.

(Excerpt) Read more at msnbc.msn.com ...


TOPICS: Business/Economy; Miscellaneous; News/Current Events; US: New Jersey
KEYWORDS: allstate; newjersey
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To: The South Texan

"Try telling your mortgage company you are not buying insurance."

If you don't want to buy homeowners' insurance, don't borrow money to buy your house; i.e., don't give someone else an insurable interest in your property.


181 posted on 12/08/2006 2:04:45 PM PST by riverdawg
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To: FreedomPoster
My nom de freep might offer a clue. Also, as far as I know there is only one Statehouse.
182 posted on 12/08/2006 2:06:31 PM PST by Lonesome in Massachussets (The hallmark of a crackpot conspiracy theory is that it expands to include countervailing evidence.)
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To: CindyDawg
We (in other states) need to help them fight this. If they can cherry pick in NJ, the next step will probably be Florida and the Gulf States.

Sounds like a red lining practice to me.

By the way I agree with red lining. (The term "redlining" comes from the practice of marking red lines on a map, which banks would do in order to delineate areas they did not want to lend to.) - tom

183 posted on 12/08/2006 2:19:10 PM PST by Capt. Tom (Don't confuse the Bushies with the dumb Republicans - Capt. Tom)
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To: TankerKC

You're going to take the side of the insurance companies? Good luck with that.


184 posted on 12/08/2006 3:04:18 PM PST by fleagle
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To: Hydroshock
I suspect this might have something to do with NJ's crooked lawyer reputation.

Go after insurance fraud--

185 posted on 12/08/2006 3:05:38 PM PST by Mamzelle
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To: Mo1

Allstate did this to me years ago in NY due to floods along the Mississippi River. I don't quite understand it because although I lived within a 1/2 mile of the Ocean, I was about 100 feet above Sea Level. FWIW, Allstate lost all of my other business because of this, and I haven't gone back since.


186 posted on 12/08/2006 3:16:26 PM PST by Woodman ("One of the most striking differences between a cat and a lie is that a cat has only nine lives." PW)
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To: fleagle
I remember in Texas how the people I worked with would wait until a good hailstorm passed by to get their old roofs replaced--with a little help from their homeowner's insurance.

These were pillars of the community--and I started to understand how my premiums went to support "soft fraud" like this. If they'd gotten a little visit from the State Atty Gen Insurance Fraud Committee they'd have learned a good lesson. But they all got away with it, and even seemed to feel entitled to get away with it.

Homeowners Insurance companies write policies to exclude floodwater damage--then we hear squawking that, yes, they do exclude coverage for floodwater damage. Entitlement mentality again. Because a great tragedy has come about, the business should be a sacrificial lamb.

187 posted on 12/08/2006 3:18:23 PM PST by Mamzelle
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To: Howlin

There was a newspaper article a few years ago as follows about many of the largest insurers in Florida established separate companies that pay Florida losses only with Florida premiums. If they have a big loss they can dissolve the Florida company without damaging the parent company. There's an article that was in the Wall Street Journal 9-7-2004. If you would like the website url please let me know.


188 posted on 12/08/2006 3:25:48 PM PST by jrcats (Fed up & looking for answers.)
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To: Hydroshock

Well, imagine if they had another Hurricane Gloria.


189 posted on 12/08/2006 3:27:23 PM PST by nickcarraway
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To: CindyDawg

Why would we want to help fight it? I don't want to be in a pool where my rates are higher so people can live in high-risk areas.


190 posted on 12/08/2006 3:45:27 PM PST by jammer
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To: Vaquero
after the 2005 season they must be hurting.

Actually events like Katrina are windfalls for insurance companies. They get to raise their rates and dump high risk policy-holders, make back their losses(usually quite small due to re-insurance) in a couple years, and enjoy the increased premiums and lower risk profiles for eternity.

191 posted on 12/08/2006 3:46:26 PM PST by hinckley buzzard
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To: lucysmom

Out here in California they haven't been able to build becuase of regulatory hoops and hurdles.


192 posted on 12/08/2006 3:54:29 PM PST by ARA
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To: ZULU
There is also nothing wrong with a state telling an insurance company that if it wants to limit its share of the market, it should take its business elsewhere.

All that would do is further reduce the number of insurance companies in the state, driving up rates still more.

193 posted on 12/08/2006 4:01:02 PM PST by Young Scholar
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To: Melas
I don't know where you live, but (auto) liability insurance is mandatory in Texas

As (bad)luck would have it, I live in Texas.

Although I have chosen to return to electrical engineering; I, proudly, spent fifteen years as an underwriter for Lloyds of London. There are many very smart people here at FreeRepublic; some of which possess insurance knowledge that I would bow to. I would welcome any of their correction.

By any measure, I am intimately familiar with P&C insurance...its workings, and its requirements. Confess your ignorance, & be forgiven.

Auto liabilty insurance is not mandatory in Texas. It is not mandatory for personal auto libility, or even commercial.

Texas, like every state, requires evidence of financial liability/responsibility(on autos). The Texas Department of Insurance clearly spells out three different ways this requirement can be satisfied....a current insurance policy is but one of them.

Even as a homeowner, I'm required to carry "slip and fall"

"Slip & fall", knowlingly referred to as liability(casualty) coverage, is not a requirement of homeowners by Texas law. Casualty, and property, coverage is something that any responsible person would carry, whether required to or not.

Thankfully, there are a great many subjects of which I remain ignorant. Because of that, tomorrow holds great promise, and interest for me. P&C insurance is not one of those subjects.

Anything of which you are ignorant, you should be modest when discussing. Do not substitute arrogance for opportunity.

194 posted on 12/08/2006 5:06:26 PM PST by laotzu
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To: riverdawg
If you don't want to buy homeowners' insurance, don't borrow money to buy your house; i.e., don't give someone else an insurable interest in your property

Thank you.

It is always a pleasure to encounter someone who actually knows what they are talking about.

Thank you.

195 posted on 12/08/2006 5:09:33 PM PST by laotzu
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To: laotzu

Anything of which you are ignorant, you should be modest when discussing...






But I like mouthing off on sujects about which I know little or nothing. After a few beers I even understand string theory.


196 posted on 12/08/2006 5:09:33 PM PST by durasell (!)
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To: durasell
God bless you my friend.

I'm a rum drinker myself, and cannot shake my passion for argument.

197 posted on 12/08/2006 5:14:14 PM PST by laotzu
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To: ZULU
New Jersey also has a very high rate of insurance fraud. This could be an underlying reason. Corruption is rampant for auto fraud and may be for homeowners as well. I work for an insurance company and write homeowners policies in Florida daily. People fail to understand the massive cost and impact that one major catastrophe can have on the industry.

State Farm nearly went belly-up when Andrew hit Miami. There recovery was stifled by the recent storms of the last couple of bad years. One major storm can wipe out an insurance companies reserves (or catastrophe funds). Many state laws require insurance companies to retain massive funds tucked away to meet claim demands.

When the states in turn refuse to allow companies to raise rates -- the alternative is a refusal to insure. If you owned a private businees insuring homes or automobiles, would you want to do business in places where statistics show you will lose money?

198 posted on 12/08/2006 5:22:35 PM PST by evangmlw ("God Is Definitely Conservative")
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To: television is just wrong

Insurance companies do not insure homes for earthquake in California. Earthquake insurance is provided by the California Earthquake Association -- state funded. Major concern in California are fires.


199 posted on 12/08/2006 5:29:28 PM PST by evangmlw ("God Is Definitely Conservative")
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To: CharlesWayneCT

Right, only problem with your answer is we live in a nation of folk who can't add the numbers and want everything to be free.


200 posted on 12/08/2006 5:35:58 PM PST by evangmlw ("God Is Definitely Conservative")
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