Allstate to stop selling insurance in California?

In an interesting move, Allstate may stop selling homeowners insurance in California. The information comes from Allstate agents who wished not to be named. The company, of course, denies the truth to this report.

Insurance companies are odd. The apparent reason Allstate may stop selling is because of concerns it reached its capacity to write business. Of course, Allstate could reinsure their homeowners business and then write more. But, increasing capacity would keep rates lower because of competition. By Allstate pulling out of the market, they can justify their most recent rate request of a 12% increase in rates.

This is interesting. Allstate wants to get out of a market where they are making money. Or do they just want the DOI to approve their rate increase and this is a good way to get that done?

Comments

[home insurance san diego]

A lot of people ask the same question about home insurance.

The important thing to look at is how much it would cost to rebuild your house brand new.

[don]

Just asked my Alstate agent for a quote on a home here in California. He told me Alstate doesn't cover homes over $1M. Just try to find a good sized home in the bay area for under a mil. As far as I'm concerned they are already out of the market.