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