Rep. Fossella Leads Bipartisan Effort Urging Allstate to Continue Offering Homeowners Insurance in NYC

Insurance Company Cites Potential for Hurricane for Pulling Out of NYC Market

[Washington, DC] – Congressman Vito Fossella (R-NY13) today led a bipartisan coalition of Representatives from New York City urging Allstate to reconsider its decision to stop selling homeowners insurance in New York City, Westchester and Long Island. Last month, the company cited hurricane risks and the potential for future storms in the region as the reason for pulling out of the local market.

In a letter authored by Fossella and signed by Reps. Ed Towns, Charles Rangel, Carolyn Maloney, Anthony Weiner, Eliot Engel and Major Owens, the lawmakers said Allstate’s decision to discontinue offering homeowners policies in the eight counties could have negative implications for the availability and affordability of insurance.

“This decision could lead to higher premiums for all New York City homeowners,” Fossella said. “With less competition in the marketplace, premiums are very likely to rise. With New Yorkers already paying the highest taxes in the nation, the last thing we need is higher insurance premiums to increase the cost of living in the city. I am pleased to work on a bipartisan level to urge Allstate to review its decision and reconsider its plans to leave the New York City market.”

Allstate is the largest provider of homeowners insurance in New York State and New York City, with 18% and 26% (or 450,000 policies) of the market respectively. Last month, the company said it would no longer sell new policies in New York City, Westchester and Long Island and that it would also accelerate the number of policies cancelled each year. Allstate could cancel a many as 18,000 policies annually under State law, although the company said it expects to be below that number.
-------------------------------------------------------
Copy of Fossella’s letter to Allstate…

February 3, 2006

Mr. Edward M. Liddy
Chairman and Chief Executive Officer
Allstate
2775 Sanders Road
Northbrook, IL 60062

Dear Mr. Liddy,

 It has come to our attention that effective January 1, 2006, Allstate will no longer write homeowners insurance policies for residents of the New York City area.

 We respectfully urge you to reconsider this decision.  Because Allstate writes 26% of the homeowners policies in the New York City area, we are concerned Allstate’s decision not to renew homeowners policies will have negative implications for the availability and affordability of homeowners insurance in the affected counties. 

 As representatives of New York City homeowners, we feel this decision may have an adverse effect on our constituents and should therefore be reconsidered. 

 Thank you for your attention to this request. 

Sincerely,

Vito Fossella                  Ed Towns 
Member of Congress      Member of Congress

Charles Rangel               Carolyn Maloney
Member of Congress      Member of Congress

Anthony Weiner              Eliot Engel   
Member of Congress       Member of Congress

Major Owens
Member of Congress

Back to Press Releases