Definittion of Redlining

[GMarcan920]

What is the name of your state? MA

Living on Cape Cod, we're seeing many insurance companies declining to write coverage (companies that have been writing previously) just on the Cape because they feel we're due for a catastrophic event. Isn't this Redlining and isn't Redlining illegal? I've seen nothing anywhere that the companies that leave the Cape are forbidden to write elsewhere in the state, and, in fact, I know that some are continuing to write elsewhere in MA.

 

[Country Living]

http://en.wikipedia.org/wiki/Redlining

 

[Betty]

No, this is not redlining. Public ins. companies can decline to write coverage in areas where they believe the area is more likely to have a catastrophic event (ie hurricane) than other areas. Redlining applies more to failing to issue coverage baseds on race, religion, etc. .....

 

[GMarcan920]

Appreciate your taking the time as I really felt it was redlining. It just seems wrong, but so be it. Thanks again

 

[Country Living]

Check with your state insurance office to see if they have an insurance pool for areas such as yours.

http://www.mass.gov/doi/

 

[GMarcan920]

They do have the MA Fair Plan; I work in an insurance agency so I'm witnessing first hand all the insurance companies bailing out "just because" and it doesn't seem right. The rest of the state has had horrific flooding, damaging thunderstorms, we've had no weather to speak of and generally don't, but they're all worried about the "catastrophic event" that we're supposedly due for. It just doesn't seem right, but so be it