Allstate Insurance Drop Homeowner Policies
Allstate Floridian has announced it is dropping around 95,000 residential insurance policies and ceasing all commercial cover within Florida. Allstate will hold on to 663,000 homeowner policies within areas where it feels the risks are acceptable.
The decision comes as a direct result of last year’s hurricanes when Allstate paid out $2 billion in claims. Allstate will also just join the many insurance companies to have filed for an increase in premium rates. So far 15 companies have received approval for rate increases in premiums. There was a voluntary moratorium on further filing whilst the legislature was in session, to see what was the outcome of various insurance related bills proposed, and since then 3 more companies have filed for increases. Insurance companies cannot raise rates to cover losses from previous events but can file for increases based on increased risk. Here are some of the companies and their state wide average increases: (a * denotes still awaiting approval)
American Strategic Insurance 7.8%
Atlantic Mutual Insurance Co* 20.3%
Citizens Property Insurance Corp 23.2%
Cotton States Mutual Insurance Co 20.0%
St John’s Insurance* 14.0%
State Farm Florida Insurance Co. 5.0%
United Services Automobile Association* 10.0%
Posted on 19 May 2005
