Make us your home page
Instagram

Florida okays double-digit rate increases for Allstate homeowners insurance units

State insurance regulators on Friday approved double-digit rate increases for homeowners covered by Allstate's Florida subsidiary, the Castle Key Group.

The Florida Office of Insurance Regulation approved an average increase of 18.7 percent for Castle Key Insurance policyholders and an average increase of 17.8 percent for Castle Key Indemnity policyholders.

In addition to higher rates, some Allstate customers will be paying even more due to lost discounts.

Regulators said that the insurer will no longer apply certain voluntary discounts to the hurricane portion of their premium, which could result in a higher premium. Among those removed are discounts for retirees, installing fire and burglar devices, holding multiline auto and home policies, and buying a new home. Going forward, those discounts would only be applied to the non-hurricane portion of the premium.

Despite several mild years on the hurricane front, property insurers have argued their costs are still rising, making it difficult to do business in Florida. Atlanta-based insurer Cotton States recently filed to pull out of the state after 50 years here.

Florida Insurance Commissioner Kevin McCarty has endorsed sizeable rate increases for many.

Meanwhile, major insurers such as State Farm and Nationwide have shed thousands of policies, adding to the burdens on state-run Citizens Property Insurance. Citizens, which covers homeowners who cannot find coverage on the open market, wants to raise average rates between 6 percent to 11 percent, depending on the type of policy. Regulators on Friday said they will hold a hearing on the request Sept. 7.

Even after a major retraction, Allstate remains one of the top five property insurers in Florida with 230,000 policies statewide in its combined Castle Key units. Only Castle Key Indemnity, which accounts for about a third of those policies, is accepting new business.

The company originally sought increases of 33.3 percent for Castle Key Insurance and 17.9 percent for Castle Key Indemnity customers. In pushing for the hike, the insurer said it has not had a significant rate increase in five years, and higher premiums are needed to keep pace with expenses. In particular, it cited higher non-hurricane losses and increased reinsurance costs.

Jack McDermott, a spokesman for McCarty's office, said Allstate has agreed to the decision.

Allstate spokeswoman Amy Moore acknowledged the higher rates will provide better financial stability but said the solution was only short-term.

Receiving a smaller rate increase than requested for Castle Key Insurance "does not allow the company to keep pace with the costs of providing insurance in Florida," Moore said in a statement. "We will continue to work with (state regulators) to find ways to support a platform for the long-term viability and growth for Florida's homeowner insurance market."

The rate increases will begin phasing in for new and renewal business beginning Nov. 28.

Florida okays double-digit rate increases for Allstate homeowners insurance units 09/03/10 [Last modified: Friday, September 3, 2010 10:25pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. Irish 31 brings flair, flavor to Wiregrass

    Business

    WESLEY CHAPEL — Irish 31 Pub House & Eatery opened its fifth location at The Shops at Wiregrass earlier this month.

    hillsevbiz072117: Irish 31 has opened at the Shops at Wiregrass with a warm, wood decor. Photo courtesy of Irish 31.
  2. Family fun featured at Lutz-area ice cream shop

    Business

    LUTZ — For Joe Schembri, ice cream reminds him of fun times he spent with his family as a child.

    hillsevbiz072117: Joe Schembri has opened the Ice Dreamery in Lutz. Photo courtesy of Joe Schembri.
  3. Clean Eatz offers low-cal options in South Tampa

    Business

    Inside Clean Eatz, almost everything is under 500 calories.

    Clean Eatz will offer healthy dining options in South Tampa. Photo courtesy of Clean Eatz.
  4. Salon brings a Parisian experience to Tampa

    Business

    A new salon in International Plaza, opened by French women Geraldine Jousseau and Estelle Mattingly, takes clients on a trip to Paris.

    Le Studio Paris offers a variety of salon services in International Plaza. Photo courtesy of Le Studio Paris.
  5. Ratings service Nielsen begins tracking live TV consumption on Hulu, YouTube

    Retail

    TV ratings service Nielsen will begin tracking how many people watch network TV on YouTube and Hulu to gauge how many viewers broadcast networks have through streaming, the company announced Tuesday.

    Nielsen, a ratings company, is monitoring how many viewers watch live TV on Hulu and YouTube to get a better sense of overall viewership. | [AP]