According to the insurance journal, Allstate insurance has asked Texas regulators to raise their homeowner insurance rates by as much as 10 percent for many of it’s customer base.
Allstate spokesman Joe McCormick told the Dallas Morning News that the industry is concerned about the potential for more wildfires, especially as the drought continues.
The rate filing with the Texas Department of Insurance seeks a 5.7 percent average statewide increase for customers of AllState Texas Lloyds, which is affects primarily renewal clients (or existing clients on older policies. Â Policyholders with the new insurance product, Allstate Fire and Casualty, could face rate increases of 9.8 percent or more.
The Allstate subsidiaries cover about 585,000 Texas homeowners.
The higher rates, subject to regulatory review over the next 30 days, would take effect Jan. 26 for current customers. New customers will pay more beginning this week.
The consumer group Texas Watch has objected to higher rates.