Allstate to ax 120,000 Florida policies
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- Aquawind
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Allstate to ax 120,000 Florida policies
Were paying over $500 per month for flood and homeowners insurance now. I am expecting a letter any day now.
http://www.news-press.com/apps/pbcs.dll ... 14003/1075
Allstate to ax 120,000 policies
Insurer hands Florida homeowners to select rivals
By Paige St. John
news-press.com Tallahassee Bureau
Originally posted on July 14, 2006
TALLAHASSEE — Allstate has plans to drop 120,000 more home policies beginning in November, whittling what was once Florida's second-largest insurer to less than half its 2004 size.
When it's done with the process next year, Allstate will have dropped 350,000 policies. It held 667,000 two years ago.
At the same time the company is cutting customers, it's placing that business with friendly competitors that agree to use Allstate agents to service the policies — making it easier for the “Good Hands” company to retain its profitable automotive insurance sales in Florida.
“We're doing what we can to be able to better manage our risk and to place homeowners into financially strong private carriers,” Allstate Floridian spokesman Ryan Priest said Thursday in confirming the intent to drop more home policies.
Allstate Floridian regrouped following the costly 2004 hurricane season, taking a $375 million infusion of cash from its national parent, dropping commercial lines, and announcing its agents could switch customers to select competitors.
The first was Universal Insurance Co. of North America, which agreed to pick up the first 95,000 policies shed by Allstate starting August 2005.
In May, Allstate announced Royal Palm Insurance would take over 120,000 policies to be dropped as they come up for renewal, starting November 2006.
Another round of cancellations is set to begin in November, with Royal Palm proposed to take those over as well, according to Locke Burt, president of Royal Palm.
Taxpayers could lend a hand to Royal Palm's efforts.
Burt, a former state senator, has asked for a $25 million taxpayer-backed loan to help finance Royal Palm’s assumption of Allstate policies, matching $25 million of private capital he has raised.
Burt is taking advantage of a program he helped create.
The Ormond Beach insurance executive earlier this year wrote the first draft of Florida's $250 million insurer loan program, at the request of Sen. J.D. Alexander.
Burt, who had already raised $65 million to assume the first round of Allstate cancellations, said he knew at the time he might be an applicant for more.
“I thought it was an interesting idea,” he said.
In its loan application, Royal Palm states an additional round of 120,000 Allstate non-renewals starts in November.
Priest said Thursday that Allstate Floridian, which once held 10 percent of the private market in Florida, was being “extremely transparent” about its intentions to shed a large amount of business.
“Over the past couple of years, Florida has become a very difficult market for property insurance,” Priest said. “We have to be able to put into place an appropriate business plan ... to follow through on the commitment we make to customers, with what capital we have.”
Regulators said Allstate had not advised the state of its cancellation schedule.
“We have not been made aware of any plans by Allstate, nor are they required to,” said Bob Lotane, a spokesman for the state’s Office of Insurance Regulation.
Burt said Allstate is committed to dropping the additional policies, even if Royal Palm does not get the $25 million loan it says it needs from the State Board of Administration.
“They made the decision to cancel 240,000 policies. We agreed to accept 120,000 of them. The remaining 120,000 policies do not have a home, other than Citizens,” Burt said.
“I am sure Allstate is going to do what it said it was going to do, which is start canceling them, after wind season.”
Florida’s state-run insurer of last resort, Citizens Property Insurance, already is absorbing the castoffs of other insurers as they retrench or collapse. Citizens expects to soon have nearly 1 million policies, backed by Florida’s homeowners.
http://www.news-press.com/apps/pbcs.dll ... 14003/1075
Allstate to ax 120,000 policies
Insurer hands Florida homeowners to select rivals
By Paige St. John
news-press.com Tallahassee Bureau
Originally posted on July 14, 2006
TALLAHASSEE — Allstate has plans to drop 120,000 more home policies beginning in November, whittling what was once Florida's second-largest insurer to less than half its 2004 size.
When it's done with the process next year, Allstate will have dropped 350,000 policies. It held 667,000 two years ago.
At the same time the company is cutting customers, it's placing that business with friendly competitors that agree to use Allstate agents to service the policies — making it easier for the “Good Hands” company to retain its profitable automotive insurance sales in Florida.
“We're doing what we can to be able to better manage our risk and to place homeowners into financially strong private carriers,” Allstate Floridian spokesman Ryan Priest said Thursday in confirming the intent to drop more home policies.
Allstate Floridian regrouped following the costly 2004 hurricane season, taking a $375 million infusion of cash from its national parent, dropping commercial lines, and announcing its agents could switch customers to select competitors.
The first was Universal Insurance Co. of North America, which agreed to pick up the first 95,000 policies shed by Allstate starting August 2005.
In May, Allstate announced Royal Palm Insurance would take over 120,000 policies to be dropped as they come up for renewal, starting November 2006.
Another round of cancellations is set to begin in November, with Royal Palm proposed to take those over as well, according to Locke Burt, president of Royal Palm.
Taxpayers could lend a hand to Royal Palm's efforts.
Burt, a former state senator, has asked for a $25 million taxpayer-backed loan to help finance Royal Palm’s assumption of Allstate policies, matching $25 million of private capital he has raised.
Burt is taking advantage of a program he helped create.
The Ormond Beach insurance executive earlier this year wrote the first draft of Florida's $250 million insurer loan program, at the request of Sen. J.D. Alexander.
Burt, who had already raised $65 million to assume the first round of Allstate cancellations, said he knew at the time he might be an applicant for more.
“I thought it was an interesting idea,” he said.
In its loan application, Royal Palm states an additional round of 120,000 Allstate non-renewals starts in November.
Priest said Thursday that Allstate Floridian, which once held 10 percent of the private market in Florida, was being “extremely transparent” about its intentions to shed a large amount of business.
“Over the past couple of years, Florida has become a very difficult market for property insurance,” Priest said. “We have to be able to put into place an appropriate business plan ... to follow through on the commitment we make to customers, with what capital we have.”
Regulators said Allstate had not advised the state of its cancellation schedule.
“We have not been made aware of any plans by Allstate, nor are they required to,” said Bob Lotane, a spokesman for the state’s Office of Insurance Regulation.
Burt said Allstate is committed to dropping the additional policies, even if Royal Palm does not get the $25 million loan it says it needs from the State Board of Administration.
“They made the decision to cancel 240,000 policies. We agreed to accept 120,000 of them. The remaining 120,000 policies do not have a home, other than Citizens,” Burt said.
“I am sure Allstate is going to do what it said it was going to do, which is start canceling them, after wind season.”
Florida’s state-run insurer of last resort, Citizens Property Insurance, already is absorbing the castoffs of other insurers as they retrench or collapse. Citizens expects to soon have nearly 1 million policies, backed by Florida’s homeowners.
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Yay! We get to pay even more to live in the Sunshine State. Gotta love how the insurance companies are openly saying "If we have to PAY, well, we can't afford that. We'd rather leave and be in the business of just paying out a tiny fraction of what we take in. Yeah, that's the ticket!" And nobody even try to defend this greed - didn't the biggest companies (the ones taking their ball and running away) post record profits - even after the '04 season? Yep - Florida, the "Starting to Cost a A Fortune to Live in a Crowd" State/ Move on down!
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- george_r_1961
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Re: Allstate to ax 120,000 Florida policies
Aquawind wrote:Were paying over $500 per month for flood and homeowners insurance now. I am expecting a letter any day now.
http://www.news-press.com/apps/pbcs.dll ... 14003/1075
Allstate to ax 120,000 policies
Insurer hands Florida homeowners to select rivals
By Paige St. John
news-press.com Tallahassee Bureau
Originally posted on July 14, 2006
TALLAHASSEE — Allstate has plans to drop 120,000 more home policies beginning in November, whittling what was once Florida's second-largest insurer to less than half its 2004 size.
When it's done with the process next year, Allstate will have dropped 350,000 policies. It held 667,000 two years ago.
At the same time the company is cutting customers, it's placing that business with friendly competitors that agree to use Allstate agents to service the policies — making it easier for the “Good Hands” company to retain its profitable automotive insurance sales in Florida.
“We're doing what we can to be able to better manage our risk and to place homeowners into financially strong private carriers,” Allstate Floridian spokesman Ryan Priest said Thursday in confirming the intent to drop more home policies.
Allstate Floridian regrouped following the costly 2004 hurricane season, taking a $375 million infusion of cash from its national parent, dropping commercial lines, and announcing its agents could switch customers to select competitors.
The first was Universal Insurance Co. of North America, which agreed to pick up the first 95,000 policies shed by Allstate starting August 2005.
In May, Allstate announced Royal Palm Insurance would take over 120,000 policies to be dropped as they come up for renewal, starting November 2006.
Another round of cancellations is set to begin in November, with Royal Palm proposed to take those over as well, according to Locke Burt, president of Royal Palm.
Taxpayers could lend a hand to Royal Palm's efforts.
Burt, a former state senator, has asked for a $25 million taxpayer-backed loan to help finance Royal Palm’s assumption of Allstate policies, matching $25 million of private capital he has raised.
Burt is taking advantage of a program he helped create.
The Ormond Beach insurance executive earlier this year wrote the first draft of Florida's $250 million insurer loan program, at the request of Sen. J.D. Alexander.
Burt, who had already raised $65 million to assume the first round of Allstate cancellations, said he knew at the time he might be an applicant for more.
“I thought it was an interesting idea,” he said.
In its loan application, Royal Palm states an additional round of 120,000 Allstate non-renewals starts in November.
Priest said Thursday that Allstate Floridian, which once held 10 percent of the private market in Florida, was being “extremely transparent” about its intentions to shed a large amount of business.
“Over the past couple of years, Florida has become a very difficult market for property insurance,” Priest said. “We have to be able to put into place an appropriate business plan ... to follow through on the commitment we make to customers, with what capital we have.”
Regulators said Allstate had not advised the state of its cancellation schedule.
“We have not been made aware of any plans by Allstate, nor are they required to,” said Bob Lotane, a spokesman for the state’s Office of Insurance Regulation.
Burt said Allstate is committed to dropping the additional policies, even if Royal Palm does not get the $25 million loan it says it needs from the State Board of Administration.
“They made the decision to cancel 240,000 policies. We agreed to accept 120,000 of them. The remaining 120,000 policies do not have a home, other than Citizens,” Burt said.
“I am sure Allstate is going to do what it said it was going to do, which is start canceling them, after wind season.”
Florida’s state-run insurer of last resort, Citizens Property Insurance, already is absorbing the castoffs of other insurers as they retrench or collapse. Citizens expects to soon have nearly 1 million policies, backed by Florida’s homeowners.
A MONTH????????? OMG your insurance is over twice my lot rent.
Geez
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- flashflood
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Wow, his insurance is more than twice of what I pay a month. I feel a little better, well at least for this year. Next year I have to shop around and see what happens.
Anyway, ALLSTATE "axed" me a couple of years after Hurricane Andrew and I have been "axed" 3 more times since then and I never made a damage claim with anyone of them.
Anyway, ALLSTATE "axed" me a couple of years after Hurricane Andrew and I have been "axed" 3 more times since then and I never made a damage claim with anyone of them.
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- flashflood
- Tropical Storm
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Thought this was interesting from CNN news.
"NEW YORK (Reuters) -- Allstate, the largest publicly traded insurer of homes and autos in the United States, said Wednesday that quarterly earnings jumped, helped by rising premium income."
http://money.cnn.com/2006/07/19/news/co ... /index.htm
"NEW YORK (Reuters) -- Allstate, the largest publicly traded insurer of homes and autos in the United States, said Wednesday that quarterly earnings jumped, helped by rising premium income."
http://money.cnn.com/2006/07/19/news/co ... /index.htm
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- Aquawind
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Yep $1,300 a year for Federal Flood lump sum payment and $397 month Homeowners.. Plus cars.. Yet they are making big profits. I also spent $2000 dollars removing a massive tree BEFORE somebody got hurt and insurance had to pay anyone. You would think they have a way of reinbursing me a bit and saving the whole industry claims..
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- MSRobi911
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Aquawind I feel your pain!!!!!! When we bought our house in 1990 Allstate wouldn't even write a policy on the house that we bought because it was on the "wrong street" too close to the beach. Didn't matter that we had 3 cars and a house insured with them and a car financed through them for 15 years. So we had to go to Nationwide and paid extra for a special Hurricane Rider attachment. HA! Our house is totally gone, nothing but a slab left and they DENIED our claim.....after we sue them they may not cover us any more either
But now in the bottom three counties in Mississippi anyone who buys a home can not buy hurricane coverage (wind) through any insurance company, they have to join the Windpool, which before Katrina was bottom line price was 1,000.00 a year and I don't even know what amount that was for.
So you pay homeowners insurance for fire and theft, etc.. and Flood insurance if your smart and then you have to join the Windpool and pay their jacked up rates of what they wanted to raise 400%, but I don't know what the outcome of that will be with the State Insurance Commissioner stepping in to fight that battle.
After Katrina we had to continue to pay insurance on a home that was no longer there just to keep our Hurricane Coverage in effect or they would not write us again so for 9 months we paid for insurance coverage on a building that did not exist. When we bought this house we transferred our policy up here to this house and if we decided to rebuild at our empty lot we will be able to transfer our coverage back to that house and still have hurricane coverage, we just have liability on the property right now to keep it in force. We paid 1400.00 a year for 137,000 coverage and now we pay 312 for the top coverage of 250/100, quite a difference in amount of bills for only about 5 miles away............and I can see the river from where we are now, its just across the street and fortunately this house did not get flooded during Katrina, the houses across the street did and the house next door did, but it stopped at our driveway!!
So not only is Florida getting screwed, Mississippi is being screwed big time!
Mary
But now in the bottom three counties in Mississippi anyone who buys a home can not buy hurricane coverage (wind) through any insurance company, they have to join the Windpool, which before Katrina was bottom line price was 1,000.00 a year and I don't even know what amount that was for.
So you pay homeowners insurance for fire and theft, etc.. and Flood insurance if your smart and then you have to join the Windpool and pay their jacked up rates of what they wanted to raise 400%, but I don't know what the outcome of that will be with the State Insurance Commissioner stepping in to fight that battle.
After Katrina we had to continue to pay insurance on a home that was no longer there just to keep our Hurricane Coverage in effect or they would not write us again so for 9 months we paid for insurance coverage on a building that did not exist. When we bought this house we transferred our policy up here to this house and if we decided to rebuild at our empty lot we will be able to transfer our coverage back to that house and still have hurricane coverage, we just have liability on the property right now to keep it in force. We paid 1400.00 a year for 137,000 coverage and now we pay 312 for the top coverage of 250/100, quite a difference in amount of bills for only about 5 miles away............and I can see the river from where we are now, its just across the street and fortunately this house did not get flooded during Katrina, the houses across the street did and the house next door did, but it stopped at our driveway!!
So not only is Florida getting screwed, Mississippi is being screwed big time!
Mary
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Allstate just dropped their wind/hail coverage in the 6 coastal counties of Mississippi. BUT, if you have your auto with them they are going to continue to cover wind/hail if you were in affect before December, 2005.
Mississippi wind pool has asked for a 300% increase. They will probably get it too because our ELECTED Insurance Commissioner is a wimp. I did not vote for him.
Mississippi wind pool has asked for a 300% increase. They will probably get it too because our ELECTED Insurance Commissioner is a wimp. I did not vote for him.
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Lindaloo wrote:...Mississippi wind pool has asked for a 300% increase. They will probably get it too because our ELECTED Insurance Commissioner is a wimp. I did not vote for him.
Always wondered why that is an "elected" position. IMO, he/she should report directly to the Gov (as in appointed) and be held accountable for acting in defense of the citizens rather than rubbing elbows with the insurance companies. Wimp is right. But, I also believe collusion is in there somewhere.....
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- MSRobi911
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Linda
To tell you the truth sometimes I wish I had no insurance at all instead of struggling all these years trying to pay home owners premium, flood insurance, car insurance, etc. etc. and I sit back and watch all these people that wouldn't pay 300.00 for flood insurance get all the money FREE!!!!!!!!!!!!!!! My children don't qualify for the LEAP grants because guess what, we had flood insurance and got paid a few pennies............that just sucks! and don't get me started on the "so called grants from the government" no one ever bothered to say if your combined income in your entire household was over 60,000 you couldn't even apply........take 2 adults and 2 kids in college that work part-time.....again...sorry charlie, no money for you! Robi and I both work 2 jobs to try to put our kids through college and for that we are penalized.
Mary
To tell you the truth sometimes I wish I had no insurance at all instead of struggling all these years trying to pay home owners premium, flood insurance, car insurance, etc. etc. and I sit back and watch all these people that wouldn't pay 300.00 for flood insurance get all the money FREE!!!!!!!!!!!!!!! My children don't qualify for the LEAP grants because guess what, we had flood insurance and got paid a few pennies............that just sucks! and don't get me started on the "so called grants from the government" no one ever bothered to say if your combined income in your entire household was over 60,000 you couldn't even apply........take 2 adults and 2 kids in college that work part-time.....again...sorry charlie, no money for you! Robi and I both work 2 jobs to try to put our kids through college and for that we are penalized.
Mary
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- Aquawind
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Well it turns out I was a tad over insured. It's a judgement call my agent agreed with. Was going about $191/ per square foot and now have it around $160. Structure at $225,000 versus $260,000 dropped it about 50 bucks a month. The canal lot across the street is selling for $400,000 alone but they don't cover the lot so the adjustment seems reasonable as we bought for just over a $100,000 so it's not anythig special although we have remodeled big time.
Of course the whole thing changes in October when the policy renews and my rate will undoubtedly go back up anyways.. My agent said they are still looking at dumping half of the 800,00 policies in Fl and might dump me next year.. I feel like changing companies now and not pay the people that will not stick it out with me.
Of course the whole thing changes in October when the policy renews and my rate will undoubtedly go back up anyways.. My agent said they are still looking at dumping half of the 800,00 policies in Fl and might dump me next year.. I feel like changing companies now and not pay the people that will not stick it out with me.
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- Audrey2Katrina
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Glad I'm not in THOSE hands!
A2K
A2K
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Flossy 56, Audrey 57, Hilda 64*, Betsy 65*, Camille 69*, Edith 71, Carmen 74, Bob 79, Danny, 85, Elena 85, Juan 85, Florence 88, Andrew 92*, Opal 95, Danny 97, Georges 98*, Isidore 02, Lili 02, Ivan 04, Cindy 05*, Dennis 05, Katrina 05*, Gustav 08*, Isaac 12*, Nate 17, Barry 19, Cristobal 20, Marco, 20, Sally, 20, Zeta 20*, Claudette 21 IDA* 21
since were on the subject of getting screwed by the insurance companies... I did a number on state farm this week... I switched to AIG to insure my three cars... and saved a whopping 1300 bucks a year... when I told state farm I was switching they immediately lowered my rate by 500 bucks a year... said they could give me an extra discount for my son being a good student... hell, he's been a good student the past five years... where was that discount then.... feels good to give it back to them, even if its just a little bit... I've been with state farm for 30 years... but they just aren't competitive any more... all in all they did treat me well... but I paid for it too...
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I got my notice in the mail yesterday that come January they will not be renewing my policy. I got my policy in 1991 when I bought my place and then added my auto and life insurance to Allstate. Not in all these years have we made a claim, been late on a payment and now they cancel my homeowners. But the good news is they are giving me a 6% discount on my auto insurance. As if I'm going to leave that with them now! Everything is going somewhere else as soon as I can get it there. It's getting to where we can't live in Florida anymore. Property prices are so high you can't afford to buy and if you manage to buy you can't afford the taxes and then you have to struggle to find insurance. And of course with all this it's also hard to sell and move.
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