Allstate Corporation is raising the rates for 144,000 homeowners
San Francisco, CA -- (SBWIRE) -- 09/26/2012 -- Allstate Corporation announced Tuesday that they will be raising the rates for 144,000 homeowners who reside in the Louisiana area. Homeowners who have policies with Allstate Insurance Company will see rates increased by 11.3%. This will affect about 71,000 homeowners. While the 73,000 homeowners in the Louisiana area with policies under the Allstate Indemnity Company, their sister company will see an increase of 5.4% as of March 1, 2013.
A spokeswoman for Allstate’s southern regions states that the increases, which are resulting in higher premiums for policyholders, are because of the rising costs associated with reinsurance and are being seen though the whole insurance industry. Reinsurance is what all insurance companies purchase to protect themselves from claims that are “excessive”. Reinsurance costs are much higher in areas such as Louisiana because coastal communities are at greater risk for damages due to weather.
On a whole, rates for property and casualty reinsurance have been on the rise and have seen an increase of 7% in 2012 as noted in the Guy Carpenter U.S. Property Catastrophe Rate on Line Index for 2012. The increases that will take place for Allstate Insurance Company will create about $11.9 million for the company, while Allstate Indemnity will see an increase that will generate $5.0 million based on records at the Louisiana Department of Insurance. Those numbers equal annual increases of $168 for Allstate clients in the area and an increase of $68 with Allstate Indemnity.
The Allstate group of companies and their subsidiaries are the second largest insurer in Louisiana to State Farm.
Professionalidemnity.net (http://www.professionalindemnity.net/) allows business owners to learn about the importance of insurance, and their individual indemnity coverage needed to protect their businesses and future.
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