Allstate, which already has restricted the sale of homeowners policies in many hurricane-vulnerable areas, said last week it will no longer insure earthquake damage for some 352,000 policyholders nationwide.
An Allstate representative, Mike Trevino, said the company's decision will mean Allstate gives up $60 million in premium from the earthquake endorsement portion of its homeowners policies. He added it is possible the company would see a further reduction in premiums written from homeowners who decide to switch to another carrier altogether.
Allstate, said Mr. Trevino, is attempting to place the earthquake risk of its homeowners policyholders with other carriers. In the case of customers in Washington state, he said the company is arranging for customers to get coverage through the specialty carrier GeoVera of Fairfield, Calif.
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