Allstate has stopped writing new policies for mobile homes. Odds they will cancel current policyholders? thks

Answer 1

You likely have 3 months to 2 years before you have to worry too much as your policy will not be cancelled by Allstate but will simply not be renewed.

Depending on your policy period and term you will know the cancellation will be effective at 12:01 am on the expiration date listed.

You do not have to wait for that date as you can start shopping for insurance now and self cancel the policy and have unused premium refunded by Allstate.

You do not want the policy to expire before gettign insurance as you want it done before.

There is no "must cover" rules in most states for mobile home HO polices as insurance companies can pick and chose coverage but they can note technically "red line" a particular geographic area by race or economic status.

They have likely discussed their intentions with the state department of insurance and rate bureau.

The competition's underwriting and sales departments likely already know and will make decisions about how hard they will push for old Allstate customers.

Answer 2

I completely disagree with the other posters above. Insurance companies DO NOT have to clear non-renewals and cancellations with the Department of Insurance. There are rules regarding cancellation and non-renewal but they do not have to "clear" a cancellation or non-renewal with the Department of Insurance each time.

If they have pulled out of your area, chances have definitely increased that your policy will be non-renewed. With that being said, it also depends on the loss ratio for your area. If Allstate's losses begin to subside, I would think they would not non-renew (en masse); however, if losses continue you may have to find a new insurance company.

Any agent worth their salt can explain to you the exact provisions that dictate the conditions under which an insurer can canel or non-renew your policy. I would call your agent and ask them about these provisions.

Answer 3

Most insurers that are getting out of a market are first going to clear it with the insurance department before sending out non-renewal notices.

In most cases, companies won't simply cancel policies...they'll just wait until renewal and just not renew the policies. Even though it takes a year to get everyone off their policies, it is still less burdensome to do it that way than to issue blanket cancellations.

Answer 4

In the US, each state has an Insurance Department. Usually an insurance company cannot cancel a policy without cause. However, they do not have to renew a policy if they are no longer in the business.
If you get a cancellation notice, check with your state's Insurance Commissioner to see if it is legal. When your policy expires, Allstate will not have to renew it.

Answer 5

I agree with reggerug. Each state has an insurnce comissioner and that department regulates insurance companies.

I'd say AllState needs to get permission from the department of insurance to cancel policies.

I'd say it's quite slim that they cancel existing policies.

Answer 6

I don't think so. Allstate quit writing new policies on motorcycles in my county but my policy is still good, Even when the agent moved out of the area my policy moved with him.

Answer 7

They will not cancel a policy mid term but may non renew at the annual renewal as long as 30 days notice is given. It is very likely that is what they will do.

Answer 8

If they think they can get it past the state insurance department, then I think it's pretty good that they'll nonrenew or cancel.

If you need more mobile home insurance, you'll want to go to www.foremost.com, they have a pretty good program, and you can find an agent near you.

Answer 9

Odds are very good. I'd start shopping around.

Answer 10

good at those odds they sure can turn to trash in a hurry, one large storm of tornado strength.