Allstate Bundles Home Policies with Auto Policies in North Carolina

Allstate Insurance Co. has informed 45,000 homeowners in North Carolina that it will not renew their home policies unless they also purchase commercial or private auto insurance from the insurer by Dec. 15.

Allstate spokesperson Tracy Owens in Atlanta said the decision came after a review of the insurer’s North Carolina book of business. “We wanted to be sure that we could manage our risk both now and in the future and protect the other 400,000 households we insure,” Owens said.

According to documents filed with the North Carolina Department of Insurance, Allstate indicated that it would non-renew 30,400 standard homeowners policies, 10,500 landlord packaged policies, and 4,900 mobile homes policies.

Owens said that although Allstate has decided it must drop the policies, it is providing another coverage option from Universal North America Insurance Co. Allstate has reached an agreement whereby Universal will provide a quote for 26,150 of the affected homeowners. The Denver, Colo.-based Universal also is slated to submit a quote to 9,300 of the 10,500 landlords losing their Allstate coverage.

In a separate deal, the mobile home owners will have an opportunity to find coverage through the American Modern Insurance Group.

DOI spokesperson Kerry Hall said that Allstate informed the department of its decision to non-renew the policies, although the insurer had no legal requirement to do so.

“From our perspective, what Allstate is doing is legal as long as it gives consumers a 30-day notice before cancelling the policy,” said Hall.