Allstate to Raise Homewoners Rates by up to 10%
#1
01-13-2012, 01:28 PM
Allstate to Raise Homewoners Rates by up to 10%
Homeowners insured with Allstate Corp. will soon be hit with rate increases of as much as 10 percent, the company said Wednesday.
Rate increases for renewals and new business will range from 4 percent to 10 percent annually, which translates into monthly increases of $4 to $9, effective March 26, said spokeswoman Shaundra Turner.
The rate hike is due to increased claims for water, wind and hail damage, Turner said.
Northbrook-based Allstate, the nation’s largest publicly held personal lines insurer, joins other insurance companies in raising rates in the past year amid higher industry catastrophe losses, which hit $35.9 billion nationally in 2011. That compares to an average $23.8 billion loss for 2000 to 2010, according to the Insurance Information Institute.
Bloomington-based State Farm, which insures one of every three homes in Illinois, raised its rates an average of 6.7 percent in Illinois last year and an average 3.6 percent nationally. State Farm declined to discuss whether it plans to raise rates this year.
To reduce costs, Allstate advised consumers to consult with their agents, consider raising deductibles and to take advantage of discounts. By insuring their automobiles as well as their homes with Allstate, customers can get a 30 percent discount, Turner said.
Rate increases for renewals and new business will range from 4 percent to 10 percent annually, which translates into monthly increases of $4 to $9, effective March 26, said spokeswoman Shaundra Turner.
The rate hike is due to increased claims for water, wind and hail damage, Turner said.
Northbrook-based Allstate, the nation’s largest publicly held personal lines insurer, joins other insurance companies in raising rates in the past year amid higher industry catastrophe losses, which hit $35.9 billion nationally in 2011. That compares to an average $23.8 billion loss for 2000 to 2010, according to the Insurance Information Institute.
Bloomington-based State Farm, which insures one of every three homes in Illinois, raised its rates an average of 6.7 percent in Illinois last year and an average 3.6 percent nationally. State Farm declined to discuss whether it plans to raise rates this year.
To reduce costs, Allstate advised consumers to consult with their agents, consider raising deductibles and to take advantage of discounts. By insuring their automobiles as well as their homes with Allstate, customers can get a 30 percent discount, Turner said.
#2
01-13-2012, 04:45 PM
Timely news. I'm just about to start shopping my coverage around after being told by a broker relative at Christmas that State Farm is having their way with me. Will keep in mind.
#4
01-15-2012, 02:07 PM
Is 10% an average amount? I heard that in some areas the increases will be as high as 30-35%?!!!
Thanks for sharing this.
Thanks for sharing this.
#5
01-15-2012, 02:25 PM
Most insurance companies have been very aggressive in re-pricing their business as they are losing money due to the continued downward pressure on pricing for the past 7+ years.
In addition, 2011 was a horrific year due to all the catastrophic losses. Increased deductibles are in play as well.
Bottom line, good chance your insurance is going up. Be proactive!!
#7
01-16-2012, 07:17 PM
Nothing specific (other than TX) but as I said, most companies are raising rates.
As to the cap on increases, the various insurance departments in your State approve the increases and allow the companies to raise rates. Insurance companies cannot unilaterally just raise rates, however it is rare for an insurance regulator to deny the increase request as the insurance company will find a way not to offer the product at rates they feel are not adequate.
As to the cap on increases, the various insurance departments in your State approve the increases and allow the companies to raise rates. Insurance companies cannot unilaterally just raise rates, however it is rare for an insurance regulator to deny the increase request as the insurance company will find a way not to offer the product at rates they feel are not adequate.
#8
01-16-2012, 09:46 PM
Nothing specific (other than TX) but as I said, most companies are raising rates.
As to the cap on increases, the various insurance departments in your State approve the increases and allow the companies to raise rates. Insurance companies cannot unilaterally just raise rates, however it is rare for an insurance regulator to deny the increase request as the insurance company will find a way not to offer the product at rates they feel are not adequate.
As to the cap on increases, the various insurance departments in your State approve the increases and allow the companies to raise rates. Insurance companies cannot unilaterally just raise rates, however it is rare for an insurance regulator to deny the increase request as the insurance company will find a way not to offer the product at rates they feel are not adequate.
#9
01-16-2012, 10:04 PM
2 tornadoes came thru this area last April (NE TN & SW VA) for the first time in over a generation.
Now, we've been warned .. "rates are going up".
We buy insurance to cover ourselves from incidents like this .. and then when you need insurance the most, companies want to up the ante as their play on the odds bites em in the backside.
At the same time, the companies are tighter than BP on the Gulf Coast providing funds to many of those most devastated by these weather disasters.
I don't slight the agents .. but the companies .. I can't imagine a soul who needs the coverage that doesn't feel like this really chaps their backsides.
Now, we've been warned .. "rates are going up".
We buy insurance to cover ourselves from incidents like this .. and then when you need insurance the most, companies want to up the ante as their play on the odds bites em in the backside.
At the same time, the companies are tighter than BP on the Gulf Coast providing funds to many of those most devastated by these weather disasters.
I don't slight the agents .. but the companies .. I can't imagine a soul who needs the coverage that doesn't feel like this really chaps their backsides.
