Homeowners Property Insurance Exclusions

Consumer alert: Allstate seeks premium hike

If you're a Pennsylvania resident with Allstate Property & Casualty homeowners insurance, you may face an unpleasant surprise this fall: a sizable boost in your insurance premium.

You can just suck it up - as Allstate undoubtedly expects most policyholders to do - or you can use it as a goad to do something you may find nearly as unpleasant: shop around for alternatives.

It shouldn't have to be, as I'll explain. But first, a look at what's happening with Allstate.

Citing what a spokeswoman calls "an unprecedented year with weather in Pennsylvania," Allstate has asked state officials to approve a plan that would raise premiums an average of 20 percent for the company's 195,000 policyholders - more than twice as steep an increase as sought by any other large insurer during the last six months, according to filings published in the Pennsylvania Bulletin.

The new plan was submitted Aug. 20, well before Hurricane Irene, but the spokeswoman, Julia Reusch, says that recent storms have only added to an already tough year. "With the hail, lightning, and all the winter storms, and all the tornado activity in April, it's just been unprecedented," Reusch says.

Because of the complexity of insurance pricing and the various changes it is proposing in rating factors and discounts, Allstate says the effect would vary widely from homeowner to homeowner. "Since everyone's policy is different, everyone will be affected differently," says Reusch, who advises customers to wait for premium notices and then speak to their agent about any concerns.

According to Allstate's 97-page filing, some policyholders will be offered reduced premiums while others will face increases topping 50 percent. Allstate says the individual impact ranges from a 9 percent decrease, for a policyholder whose annual premium would drop from $449 to $411, to a 56 percent increase, for a policyholder whose premium would rise from $1,351 a year to $2,112.

Reusch declined to answer questions about the filing while it is under review by state insurance officials, a process that typically takes about 60 to 90 days. "We do believe it's actuarially sound," she told me.

Have Questions About Home Insurance? » Cars and Insurance

Do you have questions about home insurance or hazard insurance? Well it might be helpful to explain what home insurance is. Home insurance is a kind of property insurance that covers your home (private homes). Home insurance combines different areas of insurance coverage to make sure your home and all of its contents are covered. You want an insurance policy that is designed for you and your home or buildings you want covered. The home insurance you decide on will cover losses that occur to your home, contents, other living expenses in case you can’t occupy your home, and also liability insurance in case of accidents that may happen at your home. So, there are many areas of home insurance that are to be considered: what to include in contents insurance, accidental damage, buildings insurance (this is the permanent part of your home), emergency cover (for specific problems that are not generally covered), and how to include insurance for high risk items.

When looking for insurance quotes for home insurance be sure to google several sites about home insurance and compare policy to policy to get the best rate. When googling home insurance you can also look up “home insurance Dallas”, or “home insurance Ennis” if that is your local area. You will find many websites that will contain a surprising amount of home insurance information. The better educated you are about home insurance the better insurance policy and rate you will get.

Here are some questions that homeowners typically have about home insurance. What is contents insurance? Contents insurance is insurance that covers the personal contents of your home that belong to you or household members and small buildings on your property (such as storage sheds).

How much contents insurance should I have? You want to insure your contents for as much as it would cost you to replace them if they were damaged or stolen.

What is accidental damage? Accidental damage is part of your home insurance that covers damage cause from accidents, such as spilling on the furniture or hammering a nail into the water heater. Accidental damage insurance is usually offered free under buildings insurance.

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