Allstate is looking to raise rates on homeowners insurance in Chicago. The company has plans to raise rates by an average of 10% throughout the state, citing a rise in water, wind and hail damage claims over the past year. State regulators will not need to review the rate proposal, as the average rate increase does not exceed the 10% mark. The insurer plans to enact the new rates on March 26 this year.
2011 has become notorious for its natural disasters. These natural disasters took a toll in Chicago as many homes, businesses and automobiles were damaged by wind and hailstorms. These storms also brought flooding to some parts of the state, which caused even more problems for insurers and consumers who were already reeling from the impact of a sleuth of devastating disasters that came to the state in 2010. While Allstate asserts that the higher rates are necessary, consumers are still loath to accept the fact that they will have to pay more money for their coverage.
In an attempt to help people save on their policies, Allstate is urging policyholders to meet with local insurance agents. Agents can offer advice on how to change policies and take advantage of some of the discounts the insurer has to offer. Consumers with auto insurance policies, for instance, can save up to 30% on discounts from the insurer, according to Shaundra Turner, a spokeswoman for Allstate.