Allstate Ordered to Cover Expenses of Rita Evacuees

October 10, 2005

  • October 10, 2005 at 7:14 am
    LL says:
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    No one wants to be out of pocket for any thing these days.
    Every year beach dwellers of FL will have 2 to 3 mandatory evacuations. Can you see an Inconvenience Exclusion/Endorsement coming for these good people?

  • October 10, 2005 at 10:33 am
    Mark says:
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    My point is that Allstate is going about their PR in a very wrong way. They need to explain the differences in the policies and why Texas customers don’t get the payments while Louisiana customers do. Under the Allstate Deluxe home policy, there is coverage for 2 weeks when a neighboring home is damaged due to the storm. This is not the case for Texas, but Allstate has done an extremely poor job of explaining this, to everyone including their agents. I happen to work for Allstate, so I know this. I have friends who are agents in the Houston area that no idea the policies were so different, and they had been telling people that their policies DID have coverage.

    Another issue is that Allstate mentions nothing about how the situation is handled when the property isn’t accessable. There isn’t any way of knowing whether or not there is damage to the house that renders it unlivable, and this will become one of those “ambiguaties” that construe coverage in favor of the insureds. Allstate would do themselves a favor by issuing a long and thought out press release explaining the entire situation, rather than being on the defensive and saying “we disagree, end of story”

  • October 10, 2005 at 11:23 am
    Hal says:
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    Well, there was a time when it was understood that the trigger on paying a property claim was damage to the insured property.
    I guess now it’s your zip code.

  • October 10, 2005 at 12:24 pm
    Susan says:
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    So true Hal.

  • October 10, 2005 at 1:03 am
    Mark says:
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    Allstate tried to get their Deluxe Plus Policy approved in Texas back in 2001 (which would cover these losses just like in Louisiana and Mississippi) but TDI refused to approve the policy form. So, blame it on TDI. And the only reason it’s becoming an issue is because of all the publicity about Allstate handing out $2500 checks to Louisiana Katrina victims. Allstate just needs to pay to avoid the bad publicity that they’re bringing on themselves.

  • October 10, 2005 at 2:16 am
    Susan says:
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    I disagree with you Mark. Allstate should not just pay to avoid the bad publicity. I don’t want my premiums going up any more than they already are because of these storms. Allstate is doing the right thing by not paying. Look at the precedent that would be setting!

  • October 10, 2005 at 2:58 am
    Hal says:
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    Is the loss of use intended to be a convenience coverage or loss of use because of a covered property damage? If it’s a convenience coverage then you could be paid this benefit if your regular travel home from work was on a train and the train broke down. Since you couldn’t get home in the regular manor your homeowners policy would pay for your over-night in the Hilton.

  • October 10, 2005 at 3:23 am
    Susan says:
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    I think we can take it much deeper than that Hal. I’ll take a steak and lobster platter please.

  • October 11, 2005 at 8:01 am
    JimnTx says:
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    Mark, it seems to me that if Allstate agents have “been telling people that their policies DID have coverage”, then there must be some ambiguities in the policy. Apparently, your agents themselves don’t understand the coverage.

  • October 11, 2005 at 8:02 am
    Susan says:
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    I agree with you Mark. I too work for Allstate and I found out last year when the storms hit S. Arlington and took my power out for a week. I had no direct physical loss to my home but in the month of June the temps were too hot for me to stay there. I had to stay at a hotel for 6 days. I lost all of my food also. I had to come out of pocket for these expenses. I never assume about coverage. If I am not sure if something will be covered, I contact claims to find out.



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