Allstate must let coastal homeowners renew

ALBANY, N.Y., Dec. 18 (UPI) -- New York coastal residents may renew homeowners insurance policies with Allstate after they were wrongly dropped, the state insurance chief said.

"Allstate customers improperly denied the chance to renew their policies now have the right to choose if they want to stay with the company," Insurance Superintendent Eric Dinallo said in a statement.

The residents were dropped because they did not carry the company's auto or life insurance policies. Dinallo ruled in August that linking customers' eligibility for homeowners insurance to their choice of carriers for other coverage was illegal, Newsday reported Tuesday.

Allstate may still continue to try to reduce the number of customers in coastal areas, which it is permitted to do, Dinallo said. Allstate has said it plans to reduce coastal customers nationwide by not renewing some policies.

"Insurance companies must be able to pay their claims when disaster strikes," Dinallo said. "They have the right ... to act prudently so their solvency is not threatened."

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