Allstate Insurance Settlement

May 19, 2008

homeowner’s insurance in austin may change

Because Allstate is one of our state’s largest homeowner’s insurance carriers, this news likely affects you. According to the Statesman:

A $71.3 million settlement between Allstate Insurance Co. and state regulators could affect up to 700,000 Texas homeowners.

After several years of tangling with regulators who claimed Allstate’s rates were unjustifiably high, the insurance company has settled on an agreement that includes:

  • $37 million in refunds for new and renewal policies written by Allstate Texas Lloyds between Dec. 1, 2004, and April 23, 2006;
  • a 3 percent rate cut for new and renewal policies written for a year starting June 2. Policyholders will get a 3 percent credit covering Aug. 20, 2007, through June 1; and
  • a freeze on premiums from June 2, 2008, to June 1, 2009. However, that provision gives Allstate an out if there are “extraordinary and unforeseen circumstances.”

If you are a current Allstate client, your agent can best tell you what the next step is in either a rebate, rate cut or premium freeze.

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