| As the hurricane season gets underway, thousands | | | | that a single event like Hurricane Katrina could wipe |
| of homeowners have started receiving unwanted | | | | out years of savings. This they stress could very well |
| letters from Allstate Insurance. The letter begins | | | | put the entire company with all it's policyholders from |
| with, "We're writing to you with what we know is | | | | all over the country at risk. There reasoning behind |
| unfortunate news about your Allstate Insurance. The | | | | this policy is even though the Northeast has not had |
| letter then went on to say, their home was being | | | | a direct hit from a hurricane in many decades, the |
| dropped from cover "because it's in the path of | | | | high replacement value of homes in their portfolio |
| future hurricanes". | | | | would make them vulnerable. |
| You may well think that this reader lives in New | | | | The biggest irony for me after last year's storm is |
| Orleans or Florida, but you would be wrong this | | | | that the insurance companies had just reported a |
| reader lives in New York. The full impact of Hurricane | | | | record $43 billion profit for the year 2005. The |
| Katrina is now being felt many hundreds of miles | | | | Insurance Information Institute, a trade group |
| away from where it first made land last year. Many | | | | reported that this was an 11.7 percent increase over |
| insurers are now scrambling to reduce their exposure | | | | the previous year and was in fact the highest net |
| to any future hurricanes that could hit their | | | | income since 1991. |
| shareholders profit. | | | | Why is it that we as homeowners are asked to |
| Allstate the nations number 2 insurer is canceling | | | | remain loyal to these "caring companies", our friends |
| more than 30,000 homeowners insurance in and | | | | with safe hands. We are requested to pay up ever |
| around the coastal counties of New York. The reason | | | | increasing amounts of money without question every |
| for this action they say is the the need to protect | | | | year, many of us have never made any claims, but |
| themselfs from future storms. They (Allstate) of | | | | as soon as there "COULD, MIGHT" be a problem we |
| course are not the only major insurance company to | | | | are dumped without a second thought. |
| do this Nationwide Mutual Insurance Co. is also no | | | | If they (the insurers) spent less of our money on all |
| longer writing new policies on the eastern half of | | | | that very expensive TV advertising, telling us "How |
| Long Island, N.Y. | | | | Wonderful" they were going to be when we needed |
| Should we really be surprised by this type of action, | | | | them the most there would be no need to cancel our |
| no it's a strategy they have used before. In 1992 | | | | policies. |
| after Hurricane Andrew most of the insurers scaled | | | | What they are doing to us is "Legalized Mugging" |
| back their presence in Florida. This forced thousands | | | | they may as well write polices with the title NO |
| of local residents into using the expensive state-run | | | | CLAIMS POLICY. After all we wouldn't want their |
| insurance pool. | | | | shareholders to lose any sleep over the possibility of |
| These companies go to great lengths to point out | | | | paying out on claims that could hit their profits. |