Allstate Insurance to Drop Non-Bundled Homeowners Insurance Policies in North Carolina

Thousands of North Carolina residents who carry homeowners insurance through Allstate Insurance are being dropped by the company for refusing to bundle their homeowners insurance policy with auto coverage, according to various media reports. Homeowners who don’t agree to purchase the additional auto insurance coverage will not be allowed to renew their policies.

Bundled Homeowners Insurance Required by Dec. 15

Allstate, a property and casualty insurance company, recently informed 45,000 homeowners that they will not renew policies which are not combined with an Allstate commercial or private auto insurance policy by Dec. 15, 2011.

Spokesperson for Allstate, Tracy Owens, spoke with stating, “We wanted to be sure that we could manage our risk both now and in the future and protect the other 400,000 households we insure.”

Documents filed with the North Carolina Department of Insurance revealed that Allstate would non-renew 30,400 standard homeowners insurance policies, 10,500 landlord-packaged policies and 4,900 mobile home policies.

Allstate Insurance to Provide Options to Dropped Policyholders

Owens went on to explain that although Allstate has decided to drop some homeowners insurance policies, it will be providing another coverage option from Universal North America Insurance Co. The insurers have agreed that Universal will provide a quote for 26,150 of the affected homeowners, as well as 9,300 of the 10,500 landlords losing their Allstate coverage.

In a separate deal, the dropped mobile home owners will have the option of finding coverage through American Modern Insurance Group.

As for the legality of Allstate’s recent decision, the North Carolina Department of Insurance explained that dropping the policies is not illegal as long as the company gives its customers 30-day notice prior to cancellation.