Allstate boots homeowners customers without auto policies
Posted January 3, 2012 10:22 a.m. EST
Raleigh, N.C. — Allstate Insurance is canceling more than 45,000 homeowners insurance policies statewide because the customers don't also have auto policies with the company.
The insurer informed the North Carolina Department of Insurance last year that it planned to decline renewal of 34,000 homeowners policies, 10,500 landlord package policies and 4,900 mobile home policies. Allstate told state regulators that the move was because none of the policies were bundled with a personal or commercial auto policy as of Dec. 15, 2010.
DOI spokeswoman Kerry Hall said other insurers have taken similar steps in recent years as they try to balance their underwriting between different segments of the market. Hall said the state doesn't regulate underwriting guidelines, so the cancellations are legal as long as policyholders are notified at least 30 days in advance.