FREDERICK, Colorado — Since Jordan Montgomery bought his home in Frederick six years ago, his family has used the same home insurance provider: Esurance.
Bundled with his car insurance, the home insurance premiums have been more affordable than what his neighbors and friends paid, even last year after he filed a claim to fix hail damage after a storm, Montgomery said.
It’s what made the e-mail this weekend all the more surprising. Montgomery said he got an e-mail from Esurance around 2 a.m. Saturday telling him that Esurance was “ending home coverage” in Colorado and that when his policy expired in July, he would have to find another carrier.
It got Montgomery wondering.
“Is this bigger market thing,” he asked. “Or am I going to have to worry about the next insurance company saying, 'yeah, we're not going to stay in Colorado, either.' You know, all the articles I saw last year about companies pulling out of California come to mind pretty quick.”
“I couldn't find anything online about it," he said. "Nobody else seemed to have any idea that this was happening or any answers for me. So, I was hoping that maybe a news story would get answers.”
Steve On Your Side learned Allstate has owned Esurance since 2011, with plans in the past five years to begin to phase out the brand. Allstate didn’t answer Steve On Your Side’s questions about what promoted the sudden exit from home insurance in Colorado.
“Allstate now offers many more options for simple, affordable products online via Allstate.com and stopped writing new business through Esurance in March 2023,” the company said in a statement to Steve On Your Side. “We’ll continue to support existing Esurance policyholders and encourage anyone with questions about their protection options to contact us.”
The e-mail Montgomery received suggested that he get a quote from Allstate. So he did. He said the Allstate quote was about $600 more per year for his policy, a 38% increase. He said he doesn’t have much faith he’ll be able to find anything more affordable in the open market.
“I'm sure the price is gonna go up,” he said. “And, you know, taxes and everything have gone up this past year. So I kind of worried where everything's gonna shake out by the end of the year.”
Jordan contacted Steve On Your Side. If you have a tip for consumer investigator Steve Staeger, click here to fill out a contact form.
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