NU Online News Service, Aug. 19, 3:40 p.m. EDT
Allstate insurance companies in Louisiana have been approved to raise homeowners insurance rates an average of 7.3 percent statewide, according to the Louisiana Department of Insurance.
The average rate increases range from 2.9 percent for approximately 2,000 policyholders of Allstate's Encompass Indemnity Company to an average of 11.6 percent for 78,375 policyholders of Allstate Insurance Company.
However, Allstate customers with homeowners and automobile coverage with the company could see premium decreases.
Rate increases are set to go into effect on Nov. 11 for Allstate's Encompass Indemnity, Encompass Property and Casualty Company and Encompass Insurance Company of America.
Rates will go into effect Dec. 2 for Allstate Indemnity and Allstate Insurance Company.
Allstate Insurance Group is the second-largest writer of homeowners multiperil in Louisiana, according to Highline Data, a part of Summit Business Media, which also owns National Underwriter.
Allstate's current written premium in Louisiana is nearly $215 million and the company has about 164,400 policies in the state, according to the insurance department.
Allstate in early 2008 settled insurance disputes with Louisiana regulators regarding a 2006 inspection program that resulted in the cancelation of more than 4,700 policies in coastal counties. Several hundred policies were reinstated by the company. Others had the opportunity to get reinstated with Allstate companies, which also paid a $250,000 fine.
In May the insurance department approved a 9.9 percent average statewide increase for State Farm, the largest insurer of homes in Louisiana. Insurance Commissioner Jim Donelon rejected State Farm's first filing for a 19.1 percent increase.
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