Last month, Allstate submitted a plan to increase rates by an average of 6.9%. They claimed it was the "cost of doing business." Haven't we all heard that? Well, that plan got rejected because of the large increase and not enough justification for it.
Here we are a month later, and they have submitted a new plan for a 5.9% increase. That still seems fairly high to me. This increase will take place immediately for policy renewals, though it could still be blocked by the Texas Department of Insurance officials.
Allstate is the second largest property insurer in Texas with about 917,000 Homes. That doesn't sound like very many, but that just shows you how many Ma 'n Pa shops there are offering coverage, though those smaller companies are still backed by the larger ones.
They are pointing out that this, more than likely won't effect the North Texas area, and it's mostly for the golf coast area.
Farmers also submitted a plan for an increase, but withdrew it. They are working on submitting a new plan that has a better chance of getting passed.
Good thing I'm no longer with Allstate!!