Allstate Wants to Raise Homeowner Insurance Rates
Allstate Insurance has asked Texas regulators to allow the company to raise homeowner rates by an average of 5.7 percent statewide.
An Allstate spokesman says the company, and the insurance industry generally, are concerned about the potential for more destructive Texas wildfires, especially as the drought continues and shows no sign of breaking.
Allstate's filing with the Texas Department of Insurance asks for an increase that averages out to 5.7 percent statewide for customers of AllState Texas Lloyds. Policyholders with Allstate Fire and Casualty could face an average increase of 9.8 percent.
Allstate covers about 585,000 Texas homeowners.
The higher rates are subject to regulatory review, but they'll go into effect January 26th for current customers. New customers will pay more beginning this week.
The consumer group Texas Watch filed objections to the higher rates.
What this means is that Allstate will start charging the higher premiums unless state insurance regulators take direct action to prevent it.
But wait! The State Insurance Commissioner is appointed by the Governor, and our Governor is running for President. Does anyone doubt that the Department of Insurance will overrule the increase, or reduce the size of the increase significantly?
Hey - it's an election year. Anything can happen. Stay tuned.