Apparently it is not just in the NW but everywhere.  I found this on google.
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Allstate Drops Most Earthquake Insurance

By THE ASSOCIATED PRESS
Published: June 2, 2006

Filed at 9:46 p.m. ET

PORTLAND, Ore. (AP) -- Allstate Insurance Co. says it is dropping earthquake insurance to most of its 407,000 quake customers nationwide as a part of a larger move to reduce exposure to catastrophic losses.

Allstate spokesman Mike Siemienas in Chicago said four states require the company to offer earthquake coverage, but the company is in various stages of talks with regulators there.

He said the states are Kentucky, Connecticut, Rhode Island and Florida. Additionally, the company will continue to renew earthquake coverage in New Hampshire, New York and Pennsylvania.

Allstate regional spokeswoman Caitlin Gorand, in Bothell, Wash., said the company has not written new earthquake insurance since March 6 and announced Friday that existing earthquake policies will not be renewed.