Allstate Corp. (ALL), the second largest U.S. auto and home insurer, said on Tuesday it is dropping earthquake coverage for most of its homeowner insurance policies as part of a plan to limit exposure to catastrophes.
"When the policies come up for renewal, they won't be offered this endorsement," said Allstate spokesman Peter Debreceny. "However, it's readily available from other companies, and our agents will arrange it for clients."
Allstate Chairman and Chief Executive Edward Liddy said in April that the company would no longer offer new coverage for earthquake damage, as well as cutting back exposure in hurricane prone areas.
Debreceny said the earthquake coverage was "an area that did not meet our needs." The insurer, based in Northbrook, Illinois, said it would continue to offer the option in states that required it.