Allstate to Stop Paying Living Expenses for Some Louisiana Customers

Allstate Insurance will no longer pay emergency living expenses for about 16,000 of its coastal homeowners in Louisiana who have wind and hail coverage through another carrier.

The change affects about 10 percent of Allstate’s 160,000 covered homeowners in the state, said Allstate spokeswoman Allison Hatcher. The living expense coverage will shift to whatever company provides those customers’ wind and hail coverage, she said.

There will be no rate increase as a result of the change for those customers who have wind and hail coverage through Allstate, Hatcher said.

Many of the affected homeowners have their wind and hail policies through Louisiana Citizens Property Insurance Corp., which began offering the coverage after many insurers dropped hurricane coverage in coastal areas following the 2005 storms.

Citizens CEO John Wortman said the additional living expenses limit is 10 percent of the policy limit. In general, that means a policy that provides $200,000 worth of coverage on the house would provide $20,000 worth of emergency living expenses.