crosspost: Allstate cancels some NYC-area homeowners policies

[bananas]

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2089737

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2006-02-06T194148Z_01_N06279214_RTRIDST_0_FINANCIAL-ALLSTATE-HURRICANES.XML

NEW YORK, Feb 6 (Reuters) - Allstate Corp. <ALL.N> said on Monday that it wasn't renewing some of its homeowners' policies in the New York City area for fears that a major hurricane could strike in the area, leaving the insurer overexposed.

The decision drew an immediate rebuke from New York State Superintendent of Insurance Howard Mills, who said he would call Allstate and other insurers in for a fact-finding hearing on Feb. 27.

Allstate, the largest publicly traded company that insures homes and cars in the U.S., has already said it wouldn't take on new home insurance in Westchester County, Long Island and the five boroughs of New York City.

...

[phantom power]

1. And so it begins.

Although I'm surprised it's in NYC. Why not the Gulf coast?

[bananas]

2. Read the thread - some interesting speculation.

especially posts #1 and #6

[phantom power]

3. Hmm. Sounds like they may already have left the Gulf.

[jpak]

6. Announcements like this are common in Florida

Tens of thousands of homeowners have had their policies canceled since Andrew...

[phantom power]

7. Are those people forced to move? Or just live uninsured?

[jpak]

9. I really don't know

But I believe the State o' FL has an "insurer of last resort" for these folks.

And on top of canceled policies, deductibles are increasing as well.

[bananas]

8. Isn't it hard to sell a house which is uninsurable?

Most banks don't like mortgaging uninsurable property.
Is this going to stop a lot of real estate transactions in NY?

[madrchsod]

4. the insurance underwriters are all ready

figuring in climate changes in thier rates increases. it`s going to cost alot more in the future for insurance companies and consumers that live on the coastlines in the world.

[phantom power]

5. But they're like the seals. They'll try to predict, and be wrong.

We'll all be wrong.