Nov. 20--Home insurance rates will jump an average 9.8 percent next month for thousands of Allstate customers.
The increase will start Dec. 17 as policies come up for renewal and affect 143,000 customers of Allstate Fire and Casualty Insurance. It's the Allstate unit's second increase this year.
The insurer needs the rate hike due to rising claims costs, particularly for roofing repairs and materials, said Bill Mellander, an Allstate spokesman.
The insurer needs the rate hike due to rising claims costs, particularly for roofing repairs and materials, said Bill Mellander, an Allstate spokesman.
"We are footing the bill on behalf of consumers for the rising costs and that impacts what Texans pay for home insurance," he said.
In addition to announcing the rate hike for home insurance, the company said it will offer auto insurance customers a 5 percent discount if they pay their premiums in full up front instead of in installments. The company will also offer more deductible choices for auto insurance customers, Mellander said.
Regulators are reviewing the rate change and can order refunds if they deem the increase unjustified, said Jerry Hagins, a Texas Department of Insurance spokesman.
Allstate Fire and Casualty increased home insurance rates 4 percent earlier this year.
Another 450,000 home insurance policyholders are insured by Texas Allstate Texas Lloyds, which stopped selling new policies in Texas in 2006. Those customers are not affected by the latest rate increase.
Also in 2006, Allstate Texas Lloyds began to drop wind coverage upon renewal of 65,000 policies along the coast, and stopped renewing coverage on thousands of non-brick homes in Harris County and others that border counties immediately on the Gulf Coast.
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Allstate still sells new home insurance policies through Allstate Fire and Casualty but it doesn't sell windstorm coverage to homeowners directly along the coast.
purva.patel@chron.com
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