Allstate Makes Case for Massive Florida Homeowner Insurance Rate Increase But is Rejected!
This week Allstate made its case for requesting Florida homeowner insurance rate increases ranging from 28 to 42%. An unpleasant followup to earlier rate filings that called for rate decreases ranging from 11 to 14%.
Allstate presented several arguments in their effort to try to get this rate increase approved as described by the Palm Beach Post:
First they pointed out that the parent company had to recapitalize the Florida subsidiaries after $725 million in losses following the 2004 hurricane losses.
So what? Why should we care? They set up these Florida pup subsidiaries to shield the parent from Florida hurricane losses and then they cry when they have to tap the parent for more money to pay up.
Allstate was also taking aim at a 19% profit. What? Who in Florida home insurance market is getting 19% to the bottom line?
When the State of Florida regulators asked more questions about the model they were told that the model was confidential and the trade secrets were owned by the modeling firm. In other words, the model is telling us we need a massive increase from Florida homeowner insurance consumers but we can’t tell you any details as to why.
Finally, the regulators pushed on Allstate and asked them why they couldn’t pay less than a 10% commission to their agents in order to cut back on the rate increase. I’m sure homeowner insurance agents in Florida loved that – at a time when they’ve been struggling to explain to thousands of dropped policyholders why they should still keep their car insurance with Allstate, they are being asked to take less.
As reported by Tom Zucco of the St. Petersburg Times, it took the state less than 24 hours to reject the rate increase.
What are your thoughts about a company that asked for a 42% rate increase when they were supposed to be turning in additional rate reductions?
It’s time for Florida homeowner insurance customers like you to stand up to the Florida homeowner insurance companies and send them a strong message.
Are you going to keep giving Allstate your car insurance business even if they are dumping your Florida homeowner insurance policy?
If you don’t think you have any options, its time for you to check out The Home Insurance Buyers Guide.
The Home Insurance Buyers Guide features the names of private Florida homeowner insurance companies still writing new business in your Florida county. Some of the companies in the guide have gone on the record saying that they will write new Florida homeowner insurance policies anywhere – including on the waterways.
Finding private Florida homeowners insurance has never been more important.
The Buyers Guide helps you decide which Florida homeowner insurance company you should select with its Buyers Guide rating – a rating on a scale of 1-10 for each company to help you narrow down the field. This makes a big difference in helping you select the companies you want to pursue – especially when each Florida homeowner insurance company financial rating is the same.
The Buyers Guide also lets you rate your satisfaction with your present Florida homeowner insurance company on a scale of 1-10. So when you use the Buyers Guide, its not only easier to find more private insurance company options, but you have a chance to get involved with the Florida homeowner insurance crisis.
Some Florida homeowner insurance consumers have immediately sent letters to their legislators when they’ve found out how few companies were actually writing new Florida home insurance business in their county.
The Home Insurance Buyers Guide will help you find affordable, private, Florida homeowners insurance quickly and easily.