Allstate To Stop Writing New Florida Home Policies

The four separate events have meant that some homeowners whose dwellings sustained successive battering have had multiple deductibles. In reaction, the state Legislature will meet in a special session next month to consider changes that might put limits on deductibles.

Yesterday, Allstate Chief Executive Edward Liddy told reporters about plans to stop writing insurance in Florida while the deductible issue is unsettled. Today, Allstate spokesman George Nolan said Mr. Liddy was merely restating current company policy.

"We are not writing new homeowners policies in a majority of the state," Mr. Nolan said.

Other companies are not following Allstate's lead.

Tom Hagerty, spokesman for the number-one-ranked Bloomington, Ill.-based State Farm, said the company is still writing new business in counties in the state.

And he does not foresee any change in policy, no matter what course of action the lawmakers decide upon. "I think we will be able to live with it no matter what they do," he said.

Some companies in the state have voluntarily waived multiple deductible costs from homeowners who have been so impacted, while others have said they will charge them only if it can be determined which event caused which damage.

Last month Mr. Liddy said in connection with the release of third-quarter earnings that the company will take part "in a new round of examinations in the insurance marketplace in several states."

In September A.M. Best downgraded Allstate's Florida subsidiary from A-minus to B-plus, while merely putting the counterparts of Nationwide and State Farm under watch.