Want to leave SD for Florida? 2 large uncapped costs: property insurance and windstorm insurance. Plus property taxes and a mortgage payment. On a $1mm house, you’d be around:
Plus, can you get insurance when you wnt to close on that new home? Read below..
Allstate Floridian Insurance Co. and its subsidiary, Allstate Floridian Indemnity Co., asked state officials late Wednesday to increase premiums for its homeowner and condominium policy holders — a move that means all of the state’s five largest property insurers have sought a double-digit price increase this year.
Allstate Floridian, Florida’s third-largest home insurer, is seeking average rate increases of 24.2 percent for Allstate Floridian Insurance customers and 33 percent for Allstate Floridian Indemnity customers.
The insurance companies are tagging higher reinsurance costs as the main reason for the planned increase. Reinsurance is coverage that insurance companies buy to help pay customer claims after a catastrophe.
“The majority of the rate request that we have asked for is attributable to the cost of reinsurance that we have to purchase so we can adequately protect our policy holders,” Allstate Floridian spokesman Ryan Priest said. “That’s really the driving factor.”
If approved, the higher premiums would apply to 270,000 customers of Allstate Floridian Insurance and 50,000 customers of Allstate Floridian Indemnity, Priest said. The company asked to charge the higher rate starting Dec. 3.
County breakdowns of the proposed increase were not available Wednesday.
Allstate Floridian is the latest insurance company to request higher rates because of higher reinsurance costs. State Farm Florida Insurance Co., Nationwide Insurance Co. of Florida, USAA and others all have blamed reinsurance as the reason for higher rates.
The two Allstate Floridian companies’ last price increases, which averaged 16.3 percent for Allstate Floridian Insurance customers and 24.4 percent for Allstate Floridian Indemnity, were approved in February. But those approvals came after protracted negotiations between the companies and state insurance officials.
Those increases worked out to between 20 percent and 30 percent for Allstate Floridian customers in Broward and Palm Beach counties.
“I can assure Allstate policy holders that the office will rigorously review this filing to assure that any rate change is justified,” said Bob Lotane, a spokesman for the state Office of Insurance Regulation.
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