Tuesday, August 22, 2006 - Allstate suspends coastal coverage

Associated Press

IRVING - Allstate will no longer offer property coverage to about 26,000 policyholders near the Texas coastline who could be susceptible to significant wind damage.

The decision affects properties in 14 inland counties - or about 3 percent of Allstate's homeowner policies in Texas.  After Hurricane Rita plowed into Texas last September, industry estimates put overall insured windstorm losses last year at $2.4 billion in Southeast Texas, including interior counties.

Allstate also announced it would no longer offer mobile home coverage to properties in parts of Harris, Bee, Brooks, Fort Bend, Goliad, Hardin, Hidalgo, Jackson, Jim Wells, Liberty, Live Oak, Orange, Victoria and Wharton counties.

"We strongly believe that the steps we've been taking, while difficult, are the responsible thing to do," Rich Crist, Allstate Texas field vice president, said in a statement. The company had already announced that it would drop windstorm coverage to homes in counties directly along the coastline to limit hurricane losses.