Can Allstate arbitrarily cancel home insurance renewal in California? Patrick Ehlen asked 8 months ago
Can Allstate arbitrarily cancel home insurance renewal in California?

Earlier this year, both State Farm and Allstate announced that they would no longer provide policies to new home insurance policyholders in California, but that existing policies would still be honored. However, I received a letter from Allstate announcing that our building insurance would not be renewed, without much explanation (“…this non-renewal is based on a business decision by Allstate and is not intended to reflect negatively on your insurability.”) Are they allowed to do this after they announced they would not? What recourse do I have?

1 Answers
Answer for Can Allstate arbitrarily cancel home insurance renewal in California? United Policyholders Staff answered 8 months ago

Patrick Ehlen,

Your situation (non-renewed by Allstate) is very unfortunate – both because it’s at odds with their public statement that they wouldn’t be dropping existing customers, but also because the market for property insurance (residential and commercial) in rural and suburban areas is currently terrible. We recommend that you file a complaint with the CA DOI (https://cdiapps.insurance.ca.gov/CP/login/) and if your current agent can’t help you – try another agent. Each agent has contracts with various insurers – and their relationships affect whether they can talk an insurance company into offering a policy or not. It’s tough out there! Good luck.