Allstate earlier this year discussed its new approach tohomeowners insurance in Oklahoma designed to limit the insurer'scosts for replacing older roofs, and after the recent rash oftornadoes in the state, that new approach is about to get its firstreal test among consumers, according to articles in Crain's ChicagoBusiness.
|In February, Crain's reportedthat Allstate CEO Thomas Wilson said in a conference call that thenew homeowners product, called House & Home, would be rolledout in Oklahoma first and then nationwide. Under the new approach,Allstate would no longer cover the full cost of replacing a damagedroof that is over 10 years old, the article says.
|It quotes Wilson as saying on the call, “People just don't gettheir roofs fixed and then a hailstorm comes and we replace a$20,000 roof when we're getting a thousand bucks from the customerand it's obviously not a good trade.”
|Now, Crain's says in a follow-uparticle that the tornado that leveled Moore, Okla. will be the company's firsttrue test to see how consumers react to the new coverage.
|Allstate is the No. 4 home insurer in the state, with 5.5percent, the article notes, but the number of policyholdersimpacted by the new coverage plan may be limited because thosewhose policies date to before October 2011 can still receive fullroof replacement even if their roof is over 10 years old.
|Still, the article quotes Consumer Federation of America'sInsurance Director J. Robert Hunter as saying the tornado losseswill allow Allstate to “get kind of a lab test” on consumerreaction to its new approach.
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