News 595 Texas Allstate Home Insurance Stop Writing Policies Coastal Tx

Due to a $4.5 billion dollar loss after Hurricanes Rita and Katrina, $500,000 of which came from coastal TX, Allstate Home Insurance will cease writing new policies in coastal counties in Texas. Counties that are one county over from the coast will also be limited. Allstate will offer no wind deductibles in those areas. Two-away counties will have a 2% deductible across the board for any wind related claims.

Allstate will not cancel their existing policies and current policyholder who move to any of the coastal counties included in the ban will be able to keep their existing home insurance. Allstate says that they "have to make sure that one or two storms are not going to wipe out the company."

The changes will go into effect on March 27 and will not effect existing policyholders who live in the affected areas..

Read more: Hurricane losses prompt Allstate to limit coverage (Beaumont Enterprise) The Allstate Corp. lost about $4.5 billion in Hurricanes Katrina and Rita, and next month will begin limiting its property insurance coverage in Texas, a corporate spokesman said Friday.