With another storm on the way, who would possibly want to hold this stock?
All of the advantages insurance companies have had in the past with minimal pay outs have been stripped by Governors and they are REQUIRED to take homeowners words for losses. The insurance companies are getting a taste of their own medicine and it is bitter.
Deductibles thrown out... costs Allstate more $$$
Premiums don't need to be paid, but policies still honored... Allstate loses more$$$
Business' water damage covered... costs Allstate more $$$
wind and plenty of trees and power poles completely destroyed homes... costing Allstate more $$$
Ten's of thousands of cars, boats, RV's destroyed... costing Allstate more $$$
Policies can't be cancelled..... costs Allstate more $$$
Another storm is on the way... will costs Allstate more$$$
Allstate must now take insureds word for losses... will costs Allstate more $$$
There are a lot of shrewd east coasters that will take full advantage of these gifts given to them and then some. Plus, they will be able to tie this next storm into Sandy as well, compounding the damages for Allstate that they are now LEGALLY REQUIRED TO HONOR!
Plus, the hundreds of millions that will be spent on attorneys fees from lawsuits that will be filed by the hundreds daily.
Why would you want to invest in a train wreck when you have all the facts right in front of you before the wreck occurs? And, why would you want to hold, when those same facts are right in front of you?
Me thinks Tammmyle7 might be a disgruntled former employee. As for what governors say, how do they just change contract wording on a whim? Don't think for a moment there won't be some form of verification before a loss is paid. Companies cannot cancel polices for non-pay during the event. This is not an unusual happening during catastrophes and not something new that is a surprise to carriers. All insurance companies have smart lawyers and deep pockets and there will be many lawsuits.