NEW YORK (Reuters) — Allstate Corp. said yesterday that it wasn’t renewing some of its homeowners’ policies in the New York City area for fears that a major hurricane could strike there, leaving the insurer overexposed.
The decision drew an immediate rebuke from New York State Superintendent of Insurance Howard Mills, who said he would call Allstate and other insurers in for a fact-finding hearing Feb. 27.
Allstate, the largest publicly traded company that insures homes and cars in the United States, has already said it wouldn’t take on new home insurance in Westchester County, Long Island and the five boroughs of New York City.
Now Allstate spokesman Michael Trevino said that his company would no longer renew a percentage of existing homeowner policies in those areas.
By law, an insurer cannot cancel 4 percent or more of its policies in a state each year without filing formal notice, according to Mr. Mills, and Allstate hadn’t done that.
Allstate considers itself overexposed along the southern New York shoreline, where it has a 26 percent share of the market.
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