Allstate and others finally abandoning Florida?

[jasons2k]

Hey JDRay, do you have more info on allstate and cancling policies? I live in Jax and have had all state for over 6 years now. I have heard nothing from them about cancling my home owners insurance. Any more info you have will be welcome. I'm afraid to call for fear they might cancel mine *LOL*

From what the agent told my wife after she called him, they are sending out the letters 90 days before your policy ends. (ours was 120 days, go figure)

He said that Allstate is leaving Florida for at least 3 years to recoup losses and should return.

Also heard from my bosses wife that Nationwide is not doing anymore policies here either and are slowing ending the ones they have now.

grrrrrrrrr. 3 years and then return. So much for being in "Good Hands". I hope nobody signs up with them again.

[Lindaloo]

State Farm has not been a good neighbor either.

[CronkPSU]

USAA would not cover us when we bought our house 2 years ago, so we took allstate, which then dropped us...luckily someone I know through work owns a state farm agency and they covered us

[Lindaloo]

USAA would not cover us when we bought our house 2 years ago, so we took allstate, which then dropped us...luckily someone I know through work owns a state farm agency and they covered us

Just don't try to file a claim and you will remain insured.

[HurryKane]

USAA would not cover us when we bought our house 2 years ago, so we took allstate, which then dropped us...luckily someone I know through work owns a state farm agency and they covered us

Just don't try to file a claim and you will remain insured.

Lindaloo,

Did State Farm drop you after a claim? What happened?

[tndefender]

Everyone should boycott any insurance company that chooses to pull homeowners coverage in their state but still offers auto. They should cancel all policies with those companies. Afterall look how many billions of dollars they have collected and taken from premium payers and think of those who payed for years and never had to make a claim. Its BS at its fullest.

I am not sure I understand your logic. The insurance business is exactly that, a business. It is not exactly a non-profit agency or a government program. Those that never have to make a claim are rewarded with lower premiums. Why should paying a premium for auto insurance entitle one to guaranteed coverage for anything else, regardless of the risk? That's like saying because I buy auto insurance from you then you must also sell me life insurance despite the fact that I am skydiver with a bad heart.

It boils down to this, insurance is a form of gambling, we place a bet to try to cover our losses however, just like a casino the odds are tilted in the insurance companies favor, only having to payout every once in a while, and now suddenly when the odds are changed they dont want to play anymore but are willing to keep the game (auto insurance) on the table because again the odds are in the houses (insurance company) favor. Do you get it now, or do i need to explain how the insurance industry is no different than when people use to pay the local thug, on a monthly bases, to assure nothing happened to him, his business or his family.

So should your local grocery store be forced to sell you groceries below cost because your family has to eat and that is all you can afford to pay? In other words, what other business do you think should be forced to stay in business despite not turning a profit just because it provides a "necessary" product or service?

And your analogy to the "local thug" simply doesn't work unless you are suggesting that insurance companies are responsible for auto accidents and natural disasters.

[gtalum]

No, but you can tell them that if they want to make millions off of auto policies, they have to provide some homeowners policies too.

Has anyon eproposed such a rule? That's actually a really good idea. Require any insurance company who wants to sell any kin dof insurance in the state to sell homeowner's insurance. Insurance is very lucrative, I doubt they'd pull out of the 4th largest state entirely if given this proposition.

[Ivanhater]

State Farm has not been a good neighbor either.

LOL, after ivan we came up with a new phrase for them " like a bad neighbor, state farm skipped town"

[sp0n9e]

strong storms come in cycles, state farm should've saved the last few years instead of returning divdends to investors (simple query from my hurricane database based on the noaa historic atlantic hurricanes ascii file 1851-2004):

Code: Select all

mysql> SELECT s.name, l.strength, YEAR(s.start_date) AS year, l.location AS location FROM storms s JOIN landfalls l ON l.storm_id = s.storm_id WHERE l.strength > 2;
+-----------+----------+------+----------+
| name      | strength | year | location |
+-----------+----------+------+----------+
| NOT NAMED |        3 | 1851 | AFL      |
| NOT NAMED |        3 | 1852 | AL       |
| NOT NAMED |        3 | 1852 | MS       |
| NOT NAMED |        3 | 1854 | GA       |
| NOT NAMED |        3 | 1855 | LA       |
| NOT NAMED |        3 | 1855 | MS       |
| NOT NAMED |        4 | 1856 | LA       |
| NOT NAMED |        3 | 1860 | LA       |
| NOT NAMED |        3 | 1860 | MS       |
| NOT NAMED |        3 | 1869 | RI       |
| NOT NAMED |        3 | 1869 | MA       |
| NOT NAMED |        3 | 1871 | CFL      |
| NOT NAMED |        3 | 1873 | BFL      |
| NOT NAMED |        3 | 1875 | BTX      |
| NOT NAMED |        3 | 1877 | AFL      |
| NOT NAMED |        3 | 1879 | NC       |
| NOT NAMED |        3 | 1879 | LA       |
| NOT NAMED |        3 | 1880 | ATX      |
| NOT NAMED |        3 | 1882 | AFL      |
| NOT NAMED |        3 | 1885 | SC       |
| NOT NAMED |        4 | 1886 | BTX      |
| NOT NAMED |        3 | 1886 | LA       |
| NOT NAMED |        3 | 1888 | CFL      |
| NOT NAMED |        3 | 1893 | GA       |
| NOT NAMED |        3 | 1893 | SC       |
| NOT NAMED |        3 | 1893 | SC       |
| NOT NAMED |        4 | 1893 | LA       |
| NOT NAMED |        3 | 1894 | AFL      |
| NOT NAMED |        3 | 1896 | AFL      |
| NOT NAMED |        3 | 1896 | DFL      |
| NOT NAMED |        4 | 1898 | GA       |
| NOT NAMED |        3 | 1899 | NC       |
| NOT NAMED |        4 | 1900 | CTX      |
| NOT NAMED |        3 | 1906 | BFL      |
| NOT NAMED |        3 | 1906 | CFL      |
| NOT NAMED |        3 | 1909 | CTX      |
| NOT NAMED |        3 | 1909 | LA       |
| NOT NAMED |        3 | 1909 | CFL      |
| NOT NAMED |        3 | 1909 | BFL      |
| NOT NAMED |        4 | 1915 | CTX      |
| NOT NAMED |        4 | 1915 | LA       |
| NOT NAMED |        3 | 1916 | MS       |
| NOT NAMED |        3 | 1916 | AL       |
| NOT NAMED |        3 | 1916 | ATX      |
| NOT NAMED |        3 | 1917 | AFL      |
| NOT NAMED |        3 | 1918 | LA       |
| NOT NAMED |        4 | 1919 | BFL      |
| NOT NAMED |        4 | 1919 | ATX      |
| NOT NAMED |        3 | 1921 | BFL      |
| NOT NAMED |        3 | 1926 | LA       |
| NOT NAMED |        4 | 1926 | CFL      |
| NOT NAMED |        3 | 1926 | BFL      |
| NOT NAMED |        3 | 1926 | AFL      |
| NOT NAMED |        3 | 1926 | AL       |
| NOT NAMED |        4 | 1928 | CFL      |
| NOT NAMED |        3 | 1929 | CFL      |
| NOT NAMED |        4 | 1932 | CTX      |
| NOT NAMED |        3 | 1933 | ATX      |
| NOT NAMED |        3 | 1933 | CFL      |
| NOT NAMED |        3 | 1933 | NC       |
| NOT NAMED |        3 | 1934 | LA       |
| NOT NAMED |        5 | 1935 | BFL      |
| NOT NAMED |        3 | 1936 | AFL      |
| NOT NAMED |        3 | 1938 | NY       |
| NOT NAMED |        3 | 1938 | CT       |
| NOT NAMED |        3 | 1938 | RI       |
| NOT NAMED |        3 | 1938 | MA       |
| NOT NAMED |        3 | 1941 | CTX      |
| NOT NAMED |        3 | 1942 | BTX      |
| NOT NAMED |        3 | 1944 | NC       |
| NOT NAMED |        3 | 1944 | VA       |
| NOT NAMED |        3 | 1944 | NY       |
| NOT NAMED |        3 | 1944 | CT       |
| NOT NAMED |        3 | 1944 | RI       |
| NOT NAMED |        3 | 1944 | BFL      |
| NOT NAMED |        3 | 1945 | CFL      |
| NOT NAMED |        4 | 1947 | CFL      |
| NOT NAMED |        3 | 1947 | LA       |
| NOT NAMED |        3 | 1947 | MS       |
| NOT NAMED |        3 | 1948 | BFL      |
| NOT NAMED |        3 | 1949 | CFL      |
| EASY      |        3 | 1950 | AFL      |
| KING      |        3 | 1950 | CFL      |
| CAROL     |        3 | 1954 | NY       |
| CAROL     |        3 | 1954 | CT       |
| CAROL     |        3 | 1954 | RI       |
| EDNA      |        3 | 1954 | MA       |
| HAZEL     |        4 | 1954 | SC       |
| HAZEL     |        4 | 1954 | NC       |
| CONNIE    |        3 | 1955 | NC       |
| IONE      |        3 | 1955 | NC       |
| AUDREY    |        4 | 1957 | CTX      |
| AUDREY    |        4 | 1957 | LA       |
| GRACIE    |        3 | 1959 | SC       |
| DONNA     |        4 | 1960 | BFL      |
| DONNA     |        3 | 1960 | NC       |
| DONNA     |        3 | 1960 | NY       |
| CARLA     |        4 | 1961 | BTX      |
| HILDA     |        3 | 1964 | LA       |
| BETSY     |        3 | 1965 | CFL      |
| BETSY     |        3 | 1965 | LA       |
| BEULAH    |        3 | 1967 | ATX      |
| CAMILLE   |        5 | 1969 | LA       |
| CAMILLE   |        5 | 1969 | MS       |
| CELIA     |        3 | 1970 | ATX      |
| CARMEN    |        3 | 1974 | LA       |
| ELOISE    |        3 | 1975 | AFL      |
| FREDERIC  |        3 | 1979 | AL       |
| FREDERIC  |        3 | 1979 | MS       |
| ALLEN     |        3 | 1980 | ATX      |
| ALICIA    |        3 | 1983 | CTX      |
| ELENA     |        3 | 1985 | AL       |
| ELENA     |        3 | 1985 | MS       |
| ELENA     |        3 | 1985 | AFL      |
| GLORIA    |        3 | 1985 | NC       |
| GLORIA    |        3 | 1985 | NY       |
| HUGO      |        4 | 1989 | SC       |
| ANDREW    |        5 | 1992 | CFL      |
| ANDREW    |        4 | 1992 | BFL      |
| ANDREW    |        3 | 1992 | LA       |
| EMILY     |        3 | 1993 | NC       |
| OPAL      |        3 | 1995 | AFL      |
| FRAN      |        3 | 1996 | NC       |
| BRET      |        3 | 1999 | ATX      |
| CHARLEY   |        4 | 2004 | BFL      |
| IVAN      |        3 | 2004 | AL       |
| IVAN      |        3 | 2004 | AFL      |
| JEANNE    |        3 | 2004 | CFL      |
+-----------+----------+------+----------+
128 rows in set (0.00 sec)


that is multiple landfalls as well. here's a key to understand the sub-locations in florida and texas:

'AFL' = Northwest Florida
'BFL' = Southwest Florida
'CFL' = Southeast Florida
'DFL' = Northeast Florida
'ATX' = South Texas
'BTX' = Central Texas
'CTX' = North Texas

[TreasureIslandFLGal]

The sad thing is that many people who bought insurance, doing the right thing 20 years ago, that still have a mortgage, are now being forced to sell their homes because they can't afford the insurance that is required to hold that mortgage. The rates are doubling and tripling so quickly that nobody can keep up unless you are very wealthy. So many people I know are moving away or having to resort back to renting because they can't afford the only available insurance.
That's why I rent. If it all gets trashed, I'm outa here. My parents literally pay twice as much as I do to live in the exact same condo complex because they own and I rent. -Sure, they are accruing value, but they jsut got their new insurance bill... it is increasing 90% for next year. They can't afford that after having their dream home for only 2 years seeing the insurance nearly triple now ... they are now resigned to going to have to sell so they can afford to live... because they don't forsee their retirement accounts being able to keep up with that sort of insurance inflation for the duration of their mortgage. Very sad.

[Windy]

Everyone should boycott any insurance company that chooses to pull homeowners coverage in their state but still offers auto. They should cancel all policies with those companies. Afterall look how many billions of dollars they have collected and taken from premium payers and think of those who payed for years and never had to make a claim. Its BS at its fullest.

I am not sure I understand your logic. The insurance business is exactly that, a business. It is not exactly a non-profit agency or a government program. Those that never have to make a claim are rewarded with lower premiums. Why should paying a premium for auto insurance entitle one to guaranteed coverage for anything else, regardless of the risk? That's like saying because I buy auto insurance from you then you must also sell me life insurance despite the fact that I am skydiver with a bad heart.

It boils down to this, insurance is a form of gambling, we place a bet to try to cover our losses however, just like a casino the odds are tilted in the insurance companies favor, only having to payout every once in a while, and now suddenly when the odds are changed they dont want to play anymore but are willing to keep the game (auto insurance) on the table because again the odds are in the houses (insurance company) favor. Do you get it now, or do i need to explain how the insurance industry is no different than when people use to pay the local thug, on a monthly bases, to assure nothing happened to him, his business or his family.

This is a silly argument. The mafia charges "insurance" for protection -- from themselves. What's implicit when they come around asking for money is that if you don't give it, THEY will be the ones to wreck your establishment. It's simply extortion.

Since insurance companies are not capable of controlling the weather or your driving habits, your analogy does not apply.

[Windy]

No, but you can tell them that if they want to make millions off of auto policies, they have to provide some homeowners policies too.

Has anyon eproposed such a rule? That's actually a really good idea. Require any insurance company who wants to sell any kin dof insurance in the state to sell homeowner's insurance. Insurance is very lucrative, I doubt they'd pull out of the 4th largest state entirely if given this proposition.

Sure. But then they will just raise the auto insurance rates to compensate for the risk they are forced to take on the homes. In the end, car drivers will subsidize the homeowners. It'd be kinda like a tax.

If you're going to do it like that, why not just set up a tax-funded state insurance system?

[sp0n9e]

not all car insurance companies are large enough to handle the costs of homeowners. I work for an insurance company (i only handle computer stuff) but i've been told that we haven't had many katrina/rita claims because people evacuate in their more highly insured cars. homeowner's is now considered high risk in florida after 2 years of heavy hitting. but if you look at the data, you can see patterns. major storms to hit florida since 1950:

Code: Select all

| EASY      |        3 | 1950 | AFL      |
| KING      |        3 | 1950 | CFL      |
| DONNA     |        4 | 1960 | BFL      |
| BETSY     |        3 | 1965 | CFL      |
| ELOISE    |        3 | 1975 | AFL      |
| ELENA     |        3 | 1985 | AFL      |
| ANDREW    |        5 | 1992 | CFL      |
| ANDREW    |        4 | 1992 | BFL      |
| OPAL      |        3 | 1995 | AFL      |
| CHARLEY   |        4 | 2004 | BFL      |
| IVAN      |        3 | 2004 | AFL      |
| JEANNE    |        3 | 2004 | CFL      |
+-----------+----------+------+----------+


if homeowner's insurance companies can survive another couple years of major storms as per the cycle tendencies, they'll have another 20-30 years of "lighter" seasons to recover and pay dividends back to their investors. but they shouldn't have paid as much to investors knowing that a hurricane cycle was going to ramp up. they have meteorologists do studies for them. they knew it was coming and should've been more prudent and raised rates earlier and paid out less to their investors.

and the fact is that if the state/fed gvmt does homeowner's insurance, it'll be pretty much like flood insurance. no insurance company wants to touch flood insurance, and almost all flood insurance is federal...last i checked no one is complaining about flood insurance being insanely high.

[dhweather]

State Farm has not been a good neighbor either.

One day, I will have an adjuster come see me. I just hope that I am alive for that day!

[bigmike]

Why bother with insurance? FEMA will pay you the money to repair your house. I'm sure if statefarm and allstate move out other companies will move in.

[T'Bonz]

If they refuse to insure in one state, deny them the right to insure in ALL states.

[sponger]

I was dropped by Allstate as well. They will automatically refer to Universal, a under writing company. Allstate will process claims and remain point of contact. Expect a premium increase of 30-40%. Not great but at least I avoided the state pool. State farm will begin writting polices Jan 1st and will quit when they reach their quota (Jan 2 ????)

[CronkPSU]

someone show me the losses...allstate didn't lose money last year, orlando sentinel had an article where their CEO was bragging two months before hurricane season about near record profits

[HurryKane]

State Farm has not been a good neighbor either.

One day, I will have an adjuster come see me. I just hope that I am alive for that day!

Mine came yesterday, finally. When I asked him how much longer they planned on keeping him here, he said, "Let's put it this way: I just signed a 3-month lease." He also said he spent six months in Florida last year.

2-3 weeks to get the check, then God knows how long before the mortgage company gives a measly portion of it back to me.

[melhow]

This is precisely why I am leaving. I had to get Citizens State insurance because NO ONE would insure my 20 year old wood frame house. So, I pay $2369 for my policy and last year I paid $1300. You can't have a mortgaged home without insurance. Now, Citizens is asking for ANOTHER MONSTER increase.. so next year it should be AT LEAST $3500 for insurance.

We are leaving because we are priced out of here. I have a tiny mortgage, but it isn't tiny once you had $200 a month for insurance. I have never even had a claim.

I am disgusted and there will be a year really soon that the only insurance is the state and it will be thousands and thousands and only the wealthy will live here.

I too am insured thorough Citizen's, and while I have not had a claim (knock on wood) for the four plus years I have owned my home, I really can't complain. I live in Largo, about 6 miles inland from the Gulf in Pinellas County. Our house was built in 67 - I'm in an E evac zone, and not in a flood zone - so pretty low-risk (if there is such a thing here). We have $132K in coverage and paid $1728 for 05/05-05/06 coverage. That's up $198 from last year, so about 12%, but we also increased coverage from $111K to $132K to compensate for rising home value in our area. We've added on replacement over depreciation value for contents and don't really have any other special riders.

Am I nuts for thinking this is a pretty ok deal? Like I've said, we've not had a claim so I can't attest to the customer service aspect of Citizens past just dealing with them though our agent, so maybe I'm way off, but I don't think that it's too bad.