Homeowners dumbfounded by Allstate's cancellations in Louisiana

[Doondoo]

Robyn Halvorsen's journey home after Hurricane Katrina was shorter than most. Halvorsen, a Latter & Blum real estate agent, was back in her Bywater home by the end of September 2005, and repairs to the home she has lived in for two decades were completed by the end of December 2005.

So after being back in her house for 15 months, Halvorsen was surprised to receive a notice from Allstate Insurance Co. around Christmas informing her that her insurance policy was slated to be canceled because the house was abandoned and in disrepair.

"I have a gardener that comes every two weeks. How could they think this house is abandoned?" asked Halvorsen, an organizer of the Krewe of St. Anne parade on Mardi Gras. "I've even got garbage cans in front of my house."

Halvorsen is one of scores of local Allstate customers who contend that their homeowners insurance coverage is being improperly dropped at the conclusion of a temporary state rule that has kept insurance policies in place since the storm. In recent days, the Louisiana Department of Insurance has received 100 complaints from customers who are being terminated at the end of Emergency Rule 23, which allows insurance companies to begin canceling customers March 1, after proper notification, if there's no indication that they plan to repair. So far, all of the complaints have been about Allstate.

Because all of the calls and e-mails have been about one company, Amy Whittington, spokeswoman for the Louisiana Department of Insurance, said the complaints may be a reflection of the fact that Allstate appears to be the first company to take advantage of its freedom to cancel people after the end of Rule 23 rather than evidence of bad behavior.

Still, the department is alarmed enough that it called a meeting with Allstate officials Thursday afternoon to discuss the situation. About half of the complaints are from people, such as Halvorsen, who say there's no reason for them to be dropped. The other half got cancellation notices without ever receiving an initial letter warning them and giving them the chance to rectify the situation.


http://www.nola.com/news/t-p/frontpage/index.ssf?/base/news-7/1172298022254830.xml&coll=1

[C_eh_N_eh_D_eh]

1. So much for being in good hands.

[theoldman]

2. Sounds like something I would expect from State Farm.

If they have not done this already, expect them to follow in the near future.

[BOSSHOG]

4. Oh

State Farm and Allstate trade off being on the front pages of papers in Louisiana and Mississippi for their lack of concern for policy holders. It really sucks upholding conservative values when the little guy has something in writing with someone's signature on it.

[BOSSHOG]

3. The insurance companies in LA and MS have showed their "conservative" credentials

As that great conservative and bush administration spokesman limbaugh advocates, businesses should be able to run amok without government interference and let the markets decide. So insurance companies have been fat, dumb and happy (limbaughesque) along the coast, collecting premiums and being businesslike. But lo and behold when they have to pay up??

Me thinks insurance company executives are abramoff running mates. Fuck the little guy and whine when asked to be responsible.

As MS congressman Gene Taylor said after Katrina, there ougto be a register of insurance executives, similar to that of sex offenders, so you know when one lives next door to you.

[whathappened]

5. allstate sucks

years ago my wife lost her stone on her wedding wring and i thought my home owners super delux home owners insurance would cover it , they told me i had the best insurance available , guess what , i was'nt covered , i needed a rider to cover the above , bingo changed insurance , and told them they sucked , so this don't surprize me at all

[Bitwit1234]

6. Relaxed laws

Seems the administration has dropped another ball. Insurance companies can collect premiums for years and years and years. THEN the first time a customer has to collect on a CLAIM, they cancel. What kind of justice is this.

[theoldman]

8. Back when Allstate was owned by Sears they were

notorious for canceling auto policies immediately after you had your first accident.

[Swamp Rat]

7. I marched with Halvorsen a few days ago in the St. Anne parade.

;)

http://www.kreweofsaintanne.org/

[China_cat]

9. We had to find new insurance this year

(in Charleston, SC) and found that Allstate and State Farm will no longer write policies in coastal areas. They say it's too much of a risk.

We had to go with other insurance that doubled what we were paying with no increase in benefit.