Allstate Insurance Company Ordered to Reduce Homeowner's Rates

Scott Smith

Contributor

0 CommentsPrint ArticleSubscribe

Allstate has been ordered to reduce Texas homeowner's insurance rates by the Texas Department of Insurance by as much as 5%. Allstate was found to have overcharged Allstate insured's since December 2004 and must also refund this amount estimated at approximate $56 million. The Texas Department of Insurance Commissioners found Allstate's homeowner's insurance rates were excessive, unreasonable and unfairly discriminatory.

The complaint against Allstate was initiated in December 2004 when the Texas Commission disapproved Allstate's proposed rate increase and the Department of Insurance disapproved Allstate's current rate. Disapprovals were based in part on an actuarial analysis by the Department which found Allstate's homeowner's rates to be unconscionable.