When the Big One Comes to Long Island, You May Be On Your Own

Summary

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State Farm Insurance Co. recently announced it would not renew or write new insurance policies for homes within close proximity to the North or South Shore of Long Island. This business decision came on the heels of similar pullouts by Allstate, MetLife and others, leaving many Long Island residents with few options for insuring their homes.

"Statistics show it's not a matter of if but a matter of when a major hurricane will hit Long Island," said Karyn Faggello, a spokesperson for the Bloomington, Ill.-based company, whose 14.5 percent share of the New York homeowners' market is second to Allstate. "Given the density of the population and the value of the homes on Long Island, we have to limit our exposure to make sure we will be there for the rest of our customers."

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Extract

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When the Big One Comes to Long Island, You May Be On Your Own

State Farm plans to cut 1.5 percent of its New York business over the next three to six years, Faggello said. This is well within the company's rights under New York State law, which allows an insuranc...

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