Chairman and CEO of Allstate Edward Liddy received a letter from Sen. Clinton over the weekend referring to “flood insurance and asking Allstate to reconsider its policy adopted earlier this year to stop providing flood insurance to customers in coastal areas, including Long Island, New York City and Westchester County.”
Countering Allstate’s statement was a spokesperson for Sen. Clinton, Jennifer Hanley, saying “that the release was actually about homeowners' insurance in coastal areas…holders of these policies deserve answers and Allstate owes it to its customers to explain their decision” according to the Long Island newspaper Newsday.
This whole debate stems from an announcement earlier this year by Allstate saying, “in a move to limit exposure to storm damage claims it is no longer offering new homeowners insurance policies in New York City, Long Island and Westchester County and will not renew many existing policies.”
A representative of Allstate in New York, Karen Conte, commented on the reasons behind Allstate no longer offering homeowners policies in certain areas of coastal New York, “We need to do this in order to preserve the promise to provide protection to the vast majority of our customers. We have to manage our risk responsibly.”
Even though Allstate is the largest provider of homeowners insurance policies in New York people will still have plenty of other companies to buy their policies from.
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