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Allstate wants to boost rates 55% on homeowners policies
Higher deductible on storm claims sought
Saturday, November 04, 2006
By Ed Anderson
BATON ROUGE -- Allstate Insurance companies will be seeking higher rates, possibly average increases totaling 55 percent or more, for the "next several years" starting in 2007 and will increase the deductible on hurricane policies by 5 percent on homeowners qualified for wind and hail coverage, company officials said Friday.
April Eaton, Allstate's senior Southern regional corporate relations manager, said the company also will take steps to restrict or not renew wind and hail coverage to about 18,000 to 19,000 Louisiana residents -- mainly in coastal areas. Eaton said the insurer will not make wholesale cancellations in wind and hail coverage in hurricane-prone areas.
Eaton said she did not know how much of a rate increase the company will be seeking in the coming years to offset claims paid for damages from Hurricanes Katrina and Rita. But a letter from Allstate regional general counsel Lorrie Brouse to Insurance Commissioner Jim Donelon said the company's exposure "over the next several years will necessitate rate increases totaling approximately 55 percent," possibly higher.
Donelon said in a telephone interview that Allstate recently received an average 12 percent rate increase and he does not see a 55 percent increase as justified now. "That remains to be seen," he said. "It sounds like they are testing the waters."
http://www.nola.com/news/t-p/capital/index.ssf?/base/news-4/1162625524109660.xml&coll=1
Higher deductible on storm claims sought
Saturday, November 04, 2006
By Ed Anderson
BATON ROUGE -- Allstate Insurance companies will be seeking higher rates, possibly average increases totaling 55 percent or more, for the "next several years" starting in 2007 and will increase the deductible on hurricane policies by 5 percent on homeowners qualified for wind and hail coverage, company officials said Friday.
April Eaton, Allstate's senior Southern regional corporate relations manager, said the company also will take steps to restrict or not renew wind and hail coverage to about 18,000 to 19,000 Louisiana residents -- mainly in coastal areas. Eaton said the insurer will not make wholesale cancellations in wind and hail coverage in hurricane-prone areas.
Eaton said she did not know how much of a rate increase the company will be seeking in the coming years to offset claims paid for damages from Hurricanes Katrina and Rita. But a letter from Allstate regional general counsel Lorrie Brouse to Insurance Commissioner Jim Donelon said the company's exposure "over the next several years will necessitate rate increases totaling approximately 55 percent," possibly higher.
Donelon said in a telephone interview that Allstate recently received an average 12 percent rate increase and he does not see a 55 percent increase as justified now. "That remains to be seen," he said. "It sounds like they are testing the waters."
http://www.nola.com/news/t-p/capital/index.ssf?/base/news-4/1162625524109660.xml&coll=1