Effective July 11, rates began to rise 2.5 percent to 3 percent for nearly 80 percent of Allstate’s 475,000 homeowners insurance policyholders in Illinois, according to the company. But for 105,000 policyholders who became customers after March 23, 2009, the increase is 9 percent, the company said.
For customers facing the 2.5 percent to 3 percent increases, the higher costs can be alleviated if they take advantage of new discounts and deductible options being offered at the insurer, including discounts tied to insuring one’s home and automobile through the company, according to Allstate spokeswoman Shaundra Turner. Such customers can get their auto and home discounts increased by 5 percent, which will reduce the net cost of their homeowners policy, she said.
For auto customers who leave Geico for Allstate, the discount has been raised from 5 percent to 10 percent, she noted. Discounts are also available for customers who have their premiums withdrawn automatically from their bank accounts or who pay their premiums in full.
Customers should “talk to their agents, so they can explore what options work better for them,” Turner stressed.
Allstate said about a month ago its catastrophe losses nationally had increased to $2 billion at that point in the second quarter. Its pre-tax losses for May were about $600 million, and that followed $1.4 billion in catastrophe losses in April due to tornadoes in the South, Allstate said.
“Allstate has to make responsible business decisions to remain strong and positioned to deliver on our promise to our customers,” Turner said. “This includes ensuring that our prices reflect the costs of providing insurance. Costs associated with paying homeowners claims continue to increase. Factors such as the number of claims, the amount of claims and weather over the past several years all result in these increases in cost. Our priority is to make sure that we are operating our business responsibly in order to support all of our insured drivers and homeowners who may rely on our claim and recovery services in the future.