While continuing to provide coverage to existing property insurance customers in the state, Allstate announced today that as of July 1, 2007, the company will stop offering new Allstate homeowners and landlord package polices (LPP) in California.
“Allstate is taking responsible action now so that the company will continue to be in a strong position to help protect customers in California and across the country,” said Robert H. Barge, III, field vice president for Allstate in California. “This new strategy helps protect our existing customers and provides an alternative to California consumers looking for new property insurance policies.”
Today’s announcement does not affect existing Allstate property insurance customers in California. Allstate will continue to renew the homeowners and LPP policies of existing insurance customers that continue to own the property currently insured by Allstate, subject to applicable Allstate underwriting guidelines.
To help Californians seeking new property insurance policies, a program has been developed through which Allstate’s more than 1,200 California agencies may be able to assist customers looking for new property policies in obtaining coverage from Pacific Specialty Insurance Company, a third-party insurance company not affiliated with Allstate.
“Allstate agents in California will continue to offer a broad range of high-quality Allstate insurance products to help meet customer needs, including auto, renters, life and other types of insurance,” Barge continued. “And, through the program that has been created, Californians will continue to enjoy the convenience of working with their local Allstate agency to help them obtain new property insurance policies.”
Allstate’s announcement is the latest in a series of actions the company has taken to responsibly manage the risk associated with offering property insurance in catastrophe-prone California.
-- Over the past two years, Allstate introduced new business requirements designed to reduce risk and make customers' homes safer by: -- Increasing the amount of "defensible space" required around homes in wildfire areas to a minimum of 200 feet. -- Requiring automatic gas shutoff valves on homes near known, active earthquake faults, to reduce the risk of a fire following an earthquake. -- The company purchased reinsurance contracts to help spread the financial risk posed by potential catastrophes in California. -- In September 2006, Allstate filed a 12% increase homeowners insurance rating plan now pending with the California Department of Insurance to help Allstate better prepare for natural disasters in California. -- The Allstate Foundation donated more than $250,000 over the past two years to non-profit organizations in California dedicated to reducing the threat of wildfires and helping Californians prepare for disasters.
The Allstate Corporation (NYSE:ALL) is the nation’s largest publicly held personal lines insurer. Widely known through the “You’re In Good Hands With Allstate®” slogan, Allstate helps individuals in approximately 17 million households protect what they have today and better prepare for tomorrow through approximately 14,800 exclusive agencies and financial representatives in the U.S. and Canada. Customers can access Allstate products and services such as auto insurance and homeowners insurance through Allstate agencies, or in select states at allstate.com and 1-800 Allstate®. The Allstate Financial Group provides life insurance, supplemental accident and health insurance, annuity, banking and retirement products designed for individual, institutional and worksite customers that are distributed through Allstate agencies, independent agencies, financial institutions and broker-dealers.