Allstate - You're in good hands

05/25/2004 NORTHBROOK, Ill. -

A 2003 study conducted by Allstate Insurance Company identified more than 750,000 homes in coastal hurricane states that may not have flood insurance. The study looked at current Allstate homeowners insurance customers living in or near Special Flood Hazard Areas to determine if they had also obtained flood coverage for their homes. The study revealed an alarming number of homeowners potentially unprotected from the peril of flood.

The Atlantic hurricane season, which begins June 1, conjures up images of powerful, damaging winds. However, coastal flooding from storm surges and inland flooding from torrential rains can be equally damaging, more deadly and are often the forgotten force behind a hurricane.

During the 2003 Atlantic hurricane season, 22 percent of hurricane-related claim dollars paid to Allstate customers were for damages caused by flooding. Those claim dollars were paid through the National Flood Insurance Program to customers that had purchased flood insurance.

In 2003, Allstate customers in 14 states and the District of Columbia filed 114,600 claims for damage to their homes resulting from two hurricanes making landfall in the United States. More than $230 million was paid to those customers. Of those claims, 2,741 were flood damage claims from customers with flood insurance totaling more than $51 million.

“Two percent of Allstate’s claim volume accounted for 22 percent of the total dollars paid to Allstate homeowners insurance customers following hurricanes Claudette and Isabel in 2003,” said Jeffrey Deigl, Allstate Insurance Company assistant vice-president. “This is a vivid illustration of why homeowners need to consider flood insurance, and now is the time to make that consideration because a federally mandated 30-day waiting period for purchasing flood insurance could leave you dangerously unprotected if you wait until a hurricane is coming.”

Don’t get soaked…

Consumers should be aware that most homeowners, commercial and renters insurance policies do not cover flood damage. Homeowners may need separate flood insurance coverage to protect against losses from floods during hurricanes or anytime of the year.

Get covered…

Homeowners can obtain flood insurance through their local Allstate agent. The Federal Government’s National Flood Insurance Program (NFIP) provides flood insurance nationally, and claims are paid by the NFIP. Policies are sold and managed by
insurance companies like Allstate through the NFIP Write Your Own (WYO) program.

The WYO program was established in 1983 as a cooperative undertaking of the insurance industry and the Federal Insurance and Mitigation Administration. The WYO Program operates within the context of the NFIP, and is subject to its rules and regulations.

A costly tab…

The average flood insurance dollars paid to Allstate customers following hurricanes Isabel and Claudette was $18,727. Deigl says homeowners need to ask themselves if they could afford that expense without flood insurance. “Purchased separately from your homeowners, renters or commercial policies, a flood policy can help complete the insurance protection for your property,” Deigl said.

Additional information on what you can do to prepare for hurricanes and floods can be found in the Catastrophe Information Center at www.Allstate.com.

The Allstate Corporation (NYSE: ALL) is the nation’s largest publicly held personal lines insurer. Widely known through the “You’re In Good Hands With Allstate^®” slogan, Allstate provides insurance products to more than 16 million households and has approximately 12,900 exclusive agencies and financial specialists in the U.S. and Canada. Customers can access Allstate products and services through Allstate agents, or in select states at allstate.com and 1-800 Allstate^®. Encompass^SM and Deerbrook^® Insurance brand property and casualty products are sold exclusively through independent agents. Allstate Financial Group includes the businesses that provide life, annuity and insurance, retirement, banking and investment products through distribution channels that include Allstate agents, independent agents, worksite, financial institutions and broker-dealers.

FOR MORE INFORMATION:
Bill Mellander, (847) 402-5600