New York State (NYS) Assemblyman Rob Walker (R, C, I, WF - Hicksville) announced that the NYS Insurance Department recently reached an agreement with Allstate Insurance and its affiliates in which they will offer insurance to former coastal policyholders they had dropped illegally. This follows the department's investigation into the insurance company denying policy renewal because the policyholders did not have other policies, such as automobile or life coverage, with the company.

"I commend the state Insurance Department for assuring that any company doing business in New York acts in accordance with our state Insurance Law," said Walker. "The biggest single investment people make is the purchase of a home. Not only is dropping policyholders illegal just because they did not carry other forms of insurance, it is bad business practice and puts homeowners and their property at risk."

The investigation came after the insurance department received complaints from coastal homeowners stating that their insurance policies were not being renewed because they did not have an automobile or life insurance policy with the company or an affiliate as of a specific date.

As part of an agreement with New York, Allstate will offer coastal residents the opportunity to get new homeowners' coverage. If a homeowners' insurance policy was not renewed by the company or its subsidiaries partly for not having other policies with the company, they will be offered an opportunity to renew their policy.

Allstate will contact the approximately 55,000 New York homeowners affected by the dropped coverage beginning on Jan. 10. Policyholders will then have up to 12 months to accept the offer of a new policy.

"According to an insurance department statement, consumers should be aware that by accepting the offer they will be releasing Allstate from any legal claims that they could have brought against the company for the termination of their earlier coverage. It is a legal agreement that the Insurance Department strongly suggests consumers be sure they fully understand all of the terms. The Insurance Department also suggests all consumers shop as carefully as they would at any other time before deciding which insurance company is right for them," noted Walker.

More information on homeowners' insurance, including a consumer shopping guide, is available at the New York State Insurance Department's website at www.ins.state.ny.us.

Allstate companies covered by this agreement include: Allstate Insurance Company, Allstate Indemnity Company, Encompass Home and Auto Insurance Company, Encompass Indemnity Company, Encompass Independent Insurance Company, Encompass Insurance Company of America, Encompass Property and Casualty Company.