This is not in anyway an indictment on one company while propping up another one. This is merely for everyone’s education on the shift in policy that insurance carriers are changing on homeowners insurance.
Allstate is dropping about 10,000 South Carolina home insurance customers.
The company is dropping customers who don’t also carry Allstate auto coverage, have older homes and have homes insured for less than $220,000.
Allstate is the second-largest writer of homeowner insurance in South Carolina. It has about 140,000 policies, second to State Farm’s 300,000 policyholders.
Allstate spokesman Tracy Owens said the company needs to drop the customers to remain financially strong for all its customers.
Last November, the insurer announced a similar strategy in North Carolina, informing about 45,000 homeowners insurance customers they would be dropped unless they also insure their cars with Allstate.
In February, 2010 Allstate stopped writing mobile homes along the South Carolina coast.
This latest move affects about 10 percent of Allstate’s customers in South Carolina, according to Nance Lemke, senior corporate relations manager, in Atlanta.
Lemke told Insurance Journal that beginning with policies that renew on Oct. 9, 2012, Allstate will not offer the option to renew to homeowner policies throughout South Carolina that cover homes insured for less than $220,000, that are over 10 years old and lack a motor vehicle insurance policy with Allstate which was effective prior to March 11, 2012.
However, she said, Allstate agents may be able to help customers obtain alternate coverage from another insurance company. She said Allstate will contact customers by mail and encourage them to discuss options with their agent.
South Carolina Insurance Department spokeswoman Ann Roberson said Allstate is directing its South Carolina customers to Coastal Risk Underwriters, which is a program manager and wholesale broker providing specialty personal and commercial property and casualty insurance products on an admitted and surplus lines basis.
Insurance Department spokeswoman Ann Roberson said Allstate is directing its customers to Coastal Risk Underwriters, which is a program manager and wholesale broker providing specialty personal and commercial property/casualty insurance products on an admitted and surplus lines basis. CRU sells residential and commercial property insurance products in 18 states. It has offices in New York; Mount Laurel, New Jersey, and Tallahassee. Coastal Risk Underwriters is a member company of the Insight Catastrophe Group.