Schumer: Allstate Fears Are Scare Tactic (and a bit of tinfoil hat time?)

[Roland99]

Schumer: Allstate Fears Are Scare Tactic
No New Polices For New York City, Long Island Or Westchester
http://wcbstv.com/local/local_story_034120946.html

(AP) NEW YORK Sen. Charles Schumer said the state's largest provider of homeowners insurance should reconsider its decision to stop writing new policies in the metropolitan area over concerns about hurricane damage.

The Democratic senator said the chance of a Katrina-type hurricane hitting our area is once every 500 years. Allstate, he said, “should have a greater sense of responsibility.”

The company, based in Illinois, announced that as of January 1, it would no longer sell new homeowners insurance policies in New York City, Long Island or Westchester County.

...

Schumer contends that Allstate's decision would result in higher premiums for all homeowners because of reduced competition. He called the company's hurricane fears a “bogus scare tactic.”

Now, on its face it seems somewhat innocuous. Just an insurance company pulling out of a region for who-knows-what reason(s).

But, think it through a bit. Why would Allstate use claims of hurricanes hitting the NYC area as a basis for pulling out of the region (re: homeowner policies)? Why not the entire Eastern Seaboard? Do they know something about the area that we don't? Is like the "put" options seen on Boeing, United, and American prior to 9/11?

:tinfoilhat:

[converted_democrat]

1. Things that make you go hmmmm.....n/t

[woodsprite]

2. They've been watching the Weather Channel too much, afterall

"IT COULD HAPPEN TOMORROW!"

[drm604]

3. I'm guessing

that their real fear is terrorism, not because they know something, but just because it's NY City which is an obvious target. Of course they can't say that terrorism is the reason, that would be very bad PR, so they say "hurricane" instead. :eyes:

[Roland99]

5. Could be you're right

But something just hit me that it seemed odd. Perhaps it's my recent viewing of Loose Change.

[drm604]

6. I wasn't intending to be critical of your post.

It just struck me that Allstate is unlikely to be in the know about terrorist acts. Even if, hypothetically speaking, they were being planned by people in power in this country, why would Allstate know anything about it?

In fact, now that I've thought about it some more, don't most insurance policies exempt acts of war and terrorism? They also usually exempt "acts of God" which includes natural events like hurricanes. :shrug:

[LibertyLover]

4. If they are doing that in NY

than Maryland will be next. Allstate is the company I've got my homeowner's insurance with. We live close to the Chesapeake Bay. I just renewed it for the year and was told that my deductible for storm damage from hurricanes was some astronomical amount - roughly $7,000 if I remember correctly. I'm sure it will keep going up until they effectively don't cover me for hurricane damage at all even though we haven't been hit badly by hurricanes.