INSURANCE

Allstate to Cancel 20,000 Florida Homeowner Policies: The insurer made the decision in order to avoid paying claims in the Tampa Bay area should another big hurricane hit the state. The homeowners, representing 10% of Allstate Corp.’s customer base in the six-county area surrounding Tampa, will lose their coverage April 26. Allstate decided to cancel the policies because it cannot afford another disaster like Hurricane Andrew, which ripped through southern Florida two years ago, said a spokeswoman for the Northbrook, Ill.-based insurer. Allstate estimates it would have to pay $2 billion in claims should an Andrew-type storm hit the Tampa Bay area, and it wants to bring the potential loss down to $1 billion. Andrew cost Allstate $2.7 billion and all insurers $18.5 billion.