Allstate Settles With Gulf Coast Customers

Allstate Corp. will restore insurance coverage for hundreds of customers and pay $250,000 to resolve disputes over cancellation of south Louisiana homeowner policies after Hurricane Katrina, the company said on Wednesday. The company has clashed with state Insurance Commissioner, Jim Donelon, over two separate issues that resulted in several thousand policy cancellations at a time when rates had skyrocketed. Allstate said it has agreed to offer wind and hail policies to a "few hundred" customers whose coverage has been canceled, but only if their policies were in effect for at least three years on the same property.