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