As you may have read in an earlier post, several insurance companies were still asking for rate increases despite the fact that last January reforms were implemented that were supposed to LOWER rates for consumers.
Regulators here have finally let Allstate Insurance speak its piece, and finally turned a deaf-ear to them. The company was denied premium increases that reportedly ranged from 30% to over 40%!
A company spokesman said that they had saved some money by purchasing cheaper re-insurance that is now available from the state, but that the savings did not give them enough money to cover "worst case scenarios". Gosh, I am already tearing up here. This year there was NO worst case scenario here in Florida. And remember, most of these companies like to have local subsidiaries so they can cry poverty if a hurricane hits. So where is all that premium money going that they have not had to pay out this year? One would think that it would be invested safely to cover just those worst case scenarios that the company is so worried about.
Many of my customers tell me that Allstate is one of the most expensive companies in the state of Florida, and I have seen some surveys that would appear to support their comments.
Allstate can appeal the rate denial. Let's hope that too gets turned-down.
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John Elwell - REALTOR
Bill Nye Realty, Inc.
Licensed in Florida