North Dakota Insurance

The letter begins: “We are with you what we know, it is regrettable to your messages Allstate Insurance.”

Scared, Marie Collins reached for her glasses, a magnifying glass and pored over the writing, conducting a Sinking Feeling, this is not a standard mailing by the company ensures that their country of origin.

It was a cancellation. Their house was abandoned, writing said, because it is on the path of future hurricanes.

But Collins does not live in New Orleans or even Florida. She lives in New York City.

Hurricane Katrina has perhaps the country in case of the Gulf Coast during the past year, but its effects are felt hundreds of kilometers, because insurers Gerangel to their exposure to future disasters.

“It is scandalous,” said Collins, who has lived 81 of his 83 years in the same house in the New York district of Brooklyn, where a devastating hurricane has not once since 1938.

But it is one of 30000 dwellings of the nation No. 2 insurers, Allstate Corp., the cancellation is in coastal counties of New York, the need for protection from storms to come himself. Other major players are following suit: Nationwide Mutual Insurance Co. No longer writing on the new policy of the eastern half of Long Island, NY, while MetLife Inc. is one of inspections and costly storm shutters for new customers living within 5 miles of salt water.

It is an exit strategy, which deploys: After Hurricane Andrew in 1992, insurers drastically reduce its presence in Florida and force the inhabitants of costly, state-run insurance pool. The difference now is that insurers are not only created a political objectives of Hurricane traditional Florida, but throughout the East Coast.

“My homeland is in the center of Cape Cod, it is nowhere near the beach. But we are not all painted with same brush, “said Paul Covell, 67, recently received his resignation letter to the Hingham Mutual Group, Massachusetts - insurance, 5000 decreased by its clients in Chapter

Even if the North-East was not a goal in full decades, the high replacement value of houses, there is a vulnerable place in a portfolio of insurance.

“Houses in Long Island (New York) during the last five years, between 60 and 70 per cent. Believe me, our prices are not increased by 60 or 70 percent, “said Edward M. Liddy, Chairman and Chief Executive of Northbrook - Ill.-based Allstate.” You look at our exposure and you say: ” We want to provide capital for the protection and care for all our 17 million households across the country. “To achieve this, you may need to reduce your exposure in a small way in other areas.”

The present in the sector point out that only a huge event like Katrina allows economies wegzaubern year, which allows for any insurance company with any nation at risk.

Edward B. Rust Jr., chairman and CEO of State Farm Insurance Co., the largest nation of personal property and accident insurers, Andrew used as an example. During 1992, a subsidiary of Bloomington, Ill.-based companies, State Farm Fire & Casualty, was the best assurance of house arrest in the country. Andrew claims resulting from the consumption of cumulative profits since its inception in 1935.

“That’s what this low frequency, but the seriousness of events may be high. They do not eat a win, but all the accumulated capital,” said Rust. “And I do not speak only of politics in Florida But in Seattle, North Dakota, Maine, New York.