Allstate insurance customers will face higher premiums, but the company will resume writing new home and business policies.
The company announced today policy holders in eight South Mississippi Counties (George, Greene, Hancock, Harrison, Jackson, Pearl River, Perry and Stone) could see hikes in the cost of homeowner coverage of up to 90 percent. Allstate estimates that increase would be a little more than a thousand dollars a year.
The statewide average for the rate hike is almost 30 percent. With customers in the northern parts of Mississippi feeling less of the pinch, mainly because the threat of a hurricane is far less. So, some northern counties will not even see an increase at all.
The company tempered the rate news with information about an incentive program for customers who build according to Federal Alliance for Safe Homes (FLASH) codes. Homeowners insurance initiatives for Mississippi.
Allstate's new rates go into effect May 21st.
"Together with Mississippi officials, we have worked long and hard to continue to provide protection at a cost that is both appropriate to our individual policyholders and fair to all of our customers," said Allstate field vice president Ron Corbin. "We did not make this decision lightly. We understand the hardships our Mississippi customers have suffered during Hurricane Katrina and in other storms and catastrophes. We must charge rates that reflect the risk Mississippi faces every year."
Allstate to resume offering new to Allstate homeowners business with the ability to offer an appropriate premium for the risk. Allstate now has the opportunity to resume offering new Allstate homeowners policies without wind and hail in the counties of George, Hancock, Harrison, Jackson, Pearl River and Stone.
Beginning May 21, 2007, Allstate customers who have an auto policy in place for at least 60 days can again apply for Allstate homeowners insurance without wind and hail coverage. Allstate agents will be able to help customers obtain wind and hail coverage through the Mississippi Wind Pool.
"As a major provider of insurance in the state of Mississippi, we feel it is important to take steps that help ensure we are in a position to continue to help protect as many of our customers as we responsibly can," said Corbin.
Stronger building code incentives Allstate is also announcing an incentive to Allstate Mississippi customers who build their homes according to stronger building codes set by the Federal Alliance for Safe Homes (FLASH).
Allstate customers who build their homes according to the FLASH codes and have their property inspected to ensure those homes can withstand a major hurricane will have the option to reinstate their wind and hail coverage with Allstate.
FLASH is a non-profit organization dedicated to promoting disaster preparedness, property protection and safeguards for families in catastrophe-prone areas.
"We want to recognize those customers who are taking the extra steps to protect themselves, their families and their homes in case of a catastrophe," said Corbin. "Through their actions, customers who build their homes to FLASH building codes are not only protecting themselves, but helping create a stronger insurance market in Mississippi."
The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held personal lines insurer.
Widely known through the "You're In Good Hands With Allstate ® " slogan, Allstate helps individuals in approximately 17 million households protect what they have today and better prepare for tomorrow through approximately 14,800 exclusive agencies and financial representatives in the U.S. and Canada.
Customers can access Allstate products and services such as auto insurance and homeowners insurance through Allstate agencies, or in select states at allstate.com and 1-800 Allstate ® . Encompass ® and Deerbrook ® Insurance brand property and casualty products are sold exclusively through independent agents.