Allstate to Cut Back Coverage in Florida

Allstate will stop writing commercial insurance policies in Florida and won’t renew 95,000 residential homeowner policies, a decision being made because of the four hurricanes that slammed Florida last year, the company said Wednesday.

Allstate Floridian, an independent branch of Allstate Corp., will keep about 663,000 homeowner policies in the state, and Universal Insurance Co. of North America has agreed to sell policies to any Allstate customers who are not renewed, according to an Allstate release.

Allstate also will not renew its 16,000 commercial policies and will no longer write new commercial policies.

The company will continue to write new homeowner policies where it sees fit. Allstate said it took steps to ensure that homeowners and businesses wouldn’t be left without insurance. People dropped by the company can buy replacement policies with Universal and other companies through Allstate agents.

“The hurricane season of 2004 was an unprecedented event, but it illustrated to us the reality of hurricane risk in the state of Florida,” Allstate spokesman Bill Mellander said. “It altered the world of doing business in Florida.”

Allstate paid about $2 billion in claims after Hurricanes Charley, Frances, Ivan and Jeanne battered Florida, he said.

Northbrook, Ill.-based Allstate is the nation’s second-largest property and casualty insurer, after State Farm.