Time to Search for New Texas Home Insurance

August 25th, 2007 by Jeannine C

If you’re one of the 917,000 policyholders in Texas with either Allstate Texas Lloyds or Allstate Fire and Casualty, its time to check out rates with other Texas homeowners insurance companies.

Allstate plans to go ahead with a 5.9% rate increase, even though the Texas insurance commissioner ordered them not to implement the hike.  Allstate responded by going to court for a restraining order to permit them to proceed with the higher rates.  Currently the state’s consumer advocate has requested a $25,000 fine for each policy that is renewed under the new rate.  Originally Allstate had asked for a 6.9% increase, but withdrew that request.

After all the expenses from recent catastrophes, the company claims it needs the increase to cover rising construction and reinsurance costs

Texas law has standardized home owner insurance offerings, which makes it easier for consumers to compare home insurance rates between companies.  Non-standardized policies are also available, but frankly the state mandates have created excellent Texas Homeowners Insurance Policies.

Currently the Texas Department of Insurance hasn’t indicated whether they would permit any level of increase by Allstate.  Other home insurance companies are watching the situation closely to determine their next steps as well.  This will certainly get dragged through the courts for a while.

If you live in Texas and are covered by Allstate, you have nothing to lose by checking out the rates of other companies.  It is a good idea to do this on an annual basis anyway, to insure that you have adequate coverage based on the current value of your home and property.  Now, with this looming rate increase, it is more important than ever to make sure that the hands you are in are indeed good ones.

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Listen to Time to Search for New Texas Home Insurance
Listen to Time to Search for New Texas Home Insurance

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