Schumer: Allstate Fears Are Scare Tactic
No New Polices For New York City, Long Island Or Westchester
http://wcbstv.com/local/local_story_034120946.html(AP) NEW YORK Sen. Charles Schumer said the state's largest provider of homeowners insurance should reconsider its decision to stop writing new policies in the metropolitan area over concerns about hurricane damage.
The Democratic senator said the chance of a Katrina-type hurricane hitting our area is once every 500 years. Allstate, he said, “should have a greater sense of responsibility.”
The company, based in Illinois, announced that as of January 1, it would no longer sell new homeowners insurance policies in New York City, Long Island or Westchester County.
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Schumer contends that Allstate's decision would result in higher premiums for all homeowners because of reduced competition. He called the company's hurricane fears a “bogus scare tactic.”
Now, on its face it seems somewhat innocuous. Just an insurance company pulling out of a region for who-knows-what reason(s).
But, think it through a bit. Why would Allstate use claims of hurricanes hitting the NYC area as a basis for pulling out of the region (re: homeowner policies)? Why not the entire Eastern Seaboard? Do they know something about the area that we don't? Is like the "put" options seen on Boeing, United, and American prior to 9/11?
:tinfoilhat: