Saturday’s Post 11.26.11 –  After an intensive review of its North Carolina portfolio, Allstate Insurance Company has decided to non-renew homeowner’s coverage for a record 45,000 customers.  According to the insurer’s spokesperson, the company took the decision with a view to managing better, the risks of more than 400,000 other households insured under it. Allstate filed a document of intent at the North Carolina Department of Insurance, stating their decision non-renew coverage for 30,400 standard homeowners policies, 10,500 landlord packaged policies and 4,900 mobile homes. The affected homeowners all have one thing in common–Allstate Insurance Company does not cover their automobiles. However, there is no need for anxiety over the matter since the insurer will not leave anyone in the cold. Allstate reached a deal with Universal North America Insurance Company to absorb a number of homeowners affected by the move. Accordingly, Universal will offer quotes to 26,150 former Allstate customers. The Denver based company will also give quotes to 9,300 landlords, whose policies are also due for cancellation from Allstate. Mobile homeowners on the other hand, have the option to insure their abodes with the American Modern Insurance Group. The spokesperson for North Carolina’s Department of Insurance felt that although the decision was seemingly controversial, Allstate was within its rights to do so. Insurance companies have no legal obligation to renew policies they believe too risky or in breach of their terms of service. Thus, their decision to tell the Department of Insurance was merely out of professional courtesy. Allstate hopes to improve service delivery and adjust their rates to policyholders, once they have a better grasp of North Carolina’s prevalent risks.

-Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602