In an attempt to limit future losses from hurricanes, Allstate Insurance will not renew 95,000 residential homeowner policies in Florida due, in large part, to the $2 billion in claims it paid after Hurricanes Charley, Frances, Ivan, and Jeanne.
“The hurricane season of 2004 was an unprecedented event, but it illustrated to us the reality of hurricane risk in the state of Florida,” Allstate spokesman Bill Mellander said. “It altered the world of doing business in Florida.”
Allstate Floridian, an independent branch of Allstate Corp., will keep about 663,000 homeowner policies in the state, and Universal Insurance Co. of North America has agreed to sell policies to any Allstate customers who are not renewed, according to an Allstate press release.
The decision not to renew was based on geography and exposure risk, said Ryan Priest, spokesman for the company. When asked about the reactions of those not having their policies renewed, he said, “The first non-renewal letters just went out. Some are going to their agents wanting to find out more about the situation, but those not being renewed will be guaranteed coverage through Universal Insurance.”
Allstate also will not renew its 16,000 commercial policies, and no longer will write new commercial policies.
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