Allstate dropping most earthquake insurance nationwide - AP

[Eugene]

Friday, June 2, 2006 · Last updated 3:29 p.m. PT

Allstate dropping most earthquake insurance nationwide

By JOSEPH B. FRAZIER
ASSOCIATED PRESS WRITER

PORTLAND, Ore. -- Allstate Insurance says it is dropping earthquake insurance
to most of its 407,000 quake customers nationwide as a part of a larger move
to reduce exposure to catastrophic losses.

Allstate spokesman Mike Siemienas in Chicago said four states require the company
to offer earthquake coverage, but the company is in various stages of talks
with regulators there.

He said the states are Kentucky, Connecticut, Rhode Island and Florida.

Allstate regional spokeswoman Caitlin Gorand, in Bothell, Wash., said the company
has not written new earthquake insurance since March 6 and announced Friday
that existing earthquake policies will not be renewed.

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Full article: http://seattlepi.nwsource.com/local/6420AP_OR_Allstate_Earthquakes_1st_Ld_Writethru.html

[WCGreen]

1. OMG...

Do they know something we don't.....

[earth mom]

10. That's what I was thinking...

:scared:

:tinfoilhat:

[Lars39]

2. Hope the feckers that made this decision live on a forgotten fault line.

[Hekate]

3. Who are these people? Were they raised by wolves?

Would love to give them a big ol' :kick: in the A**!

Hekate

[pitohui]

5. seems almost fraudulent to have sold it in the first place

i mean really, sounds like some people in connecticut are paying for insurance they don't need

you do realize this doesn't affect earthquake coverage in california, where an earthquake might actually happen?

[IndyJones]

6. I was looking to see if CA policies would be dropped and didn't

see that. Do they still carry earthquake coverage in CA? Seems like if they didn't, they'd lose most of their home policies in CA.

[pitohui]

8. california is not covered by private insurance

it is not a profitable to insure california against earthquakes, therefore it's a state program for your earthquake coverage

many people don't buy it, keep in mind, it is NOT part of your regular homeowner's, it is separate just like flood insurance

[Hekate]

11. We had state insurance for awhile; dropped it because...

... As Californians, we bought state insurance when it became available but decided to drop it after only a few years because the payout is first quake gets it all. Unless our region happens to be first in line for the Big One, we will have paid into the pot for nothing on our own behalf when the tectonic plate shifts in our region. I know I'm grossly oversimplifying, but this didn't strike me as terribly beneficial.

Of course the way insurance schemes are run these days isn't terribly beneficial to the consumer in any case...but on the whole I don't dare be uninsured.

Hekate

[eppur_se_muova]

4. Next: will drop coverage for "unforseen events" nt

[IndyJones]

7. Yes, only planned natural disasters and fires will be covered.

[NorthernSpy]

14. LOL!

:think:

[aquart]

9. They don't do home insurance on the NE coast anymore, either.

so, is there anything they DO still insure?

[unhappycamper]

12. It seems the only thing they try to insure these days

is their revenue stream from insurance premiums.

[Hubert Flottz]

13. Insurance companies just want to collect, not to pay anything.

They all want something for nothing. The laws are all still in their favor, because of their years of lobbying, so now they have it made. I dropped Allstate several years ago.

[Anna Lee]

15. The insurance companies are financial institutions now.

They call everything insurance but are reducing their risk to zero for the good of stockholders. Don't insure anything unless you are sure you won't need that insurance. They can't show quarterly growth above expectations unless they keep all the money.