Did Allstate increase your homeowners insurance premium significantly this year?

Are you really in good hands with Allstate Insurance?

Allstate Insurance increased my homeowners insurance premium by about 23% over that of last year. I was informed by my insurance agent that Allstate Insurance is “reinsuring” homeowners insurance in Connecticut, anticipating big claims in the state in the coming future.   Reportedly Allstate suffered losses from higher claims than usual due to Midwestern storms over recent years.  As a result, my former insurance agent explained that Allstate was purchasing insurance from another insurance company, or other insurance companies, as a means of risk management, passing these additional costs onto its homeowner insurance customers.  I was also informed by another insurance agent that Allstate has not been offering homeowners insurance to a number of homeowners in Connecticut presumably as a means to manage its risk exposure to anticipated claims.

Luckily I called some other insurance carriers and I found one that offered me the same insurance coverage for about half the price that Allstate Insurance charged me on my auto insurance and homeowners insurance.  You may wonder how can this insurance carrier offer insurance for the same policies and coverages and limits as Allstate but at half the price?  Presumably this company does not reinsure, or purchase insurance from another insurance company, as a means of risk management and pass those additional costs (and markups for overhead and profits) onto me.  Why pay for a middle man, I asked myself?  I thought, why not just exclude Allstate as the middle man and save a lot of money?  So I made some calls and saved lots of moolah!

Boy, am I glad Allstate Insurance went up dramatically on its homeowners insurance premiums; otherwise, I would never have looked for another insurance carrier and realized big savings on both my homeowners insurance and auto insurance.

You’re in good hands with Allstate Insurance?!  LOL! My wallet now is in better hands with another insurance carrier for both my auto insurance and my homeowners insurance. Bye, bye, Allstate Insurance. I don’t need your hands in my wallet.

The Barefoot Accountant

About William Brighenti

William Brighenti is a Certified Public Accountant, Certified QuickBooks ProAdvisor, and Certified Business Valuation Analyst. Bill began his career in public accounting in 1979. Since then he has worked at various public accounting firms throughout Connecticut. Bill received a Master of Science in Professional Accounting degree from the University of Hartford, after attending the University of Connecticut and Central Connecticut State University for his Bachelor of Arts and Master of Arts degrees. He subsequently attended Purdue University for doctoral studies in Accounting and Quantitative Methods in Business. Bill has instructed graduate and undergraduate courses in Accounting, Auditing, and other subjects at the University of Hartford, Central Connecticut State University, Hartford State Technical College, and Purdue University. He also taught GMAT and CPA Exam Review Classes at the Stanley H. Kaplan Educational Center and at Person-Wolinsky, and is certified to teach trade-related subjects at Connecticut Vocational Technical Schools. His articles on tax and accounting have been published in several professional journals throughout the country as well as on several accounting websites. William was born and raised in New Britain, Connecticut, and served on the City's Board of Finance and Taxation as well as its City Plan Commission. In addition to the blog, Accounting and Taxes Simplified, Bill writes a blog, "The Barefoot Accountant", for the Accounting Web, a Sift Media publication.
This entry was posted in Accountants CPA Hartford, Articles and tagged , , , , , , , , , , , . Bookmark the permalink.

42 Responses to Did Allstate increase your homeowners insurance premium significantly this year?

  1. a New York Homeowner says:

    I’m facing the same situation. Debating if I should bring it to my allstate agent or just dump them.

  2. Larry Brink says:

    I was notified by my mortgage carrier that my escrow account was in arrears because they had paid Allstate their requested $5,000 plus for my mortgage insurance. Last year it was about $1,800 for insurance. When asked about the increase, the Allstate representative stated there had been three increases during the past year and had been mandated by the state. I was never informed of any of these ‘mandated’ increases. Needless to say, my wife immediately contacted another agency and they now have our business at a saving of about $3,500 over Allstate. You can keep those good hands from around my throat.

  3. CT Homebuyer says:

    I am shopping homeowners insurance right now and was wondering if you were free to disclose which carrier you moved to??

  4. David Raygor says:

    Allstate increased my Home owners policy 125% without even so much as a wink. I have not had a claim, been with Allstate for many many years and we do not get Hurricane damage.

    Allstate, can stick it!!

  5. KD says:

    I just received a call today that my homeowner’s insurance rate was going up to $845 from $577. I’ve been with them since 1986 for both home and auto. So much for loyalty! What’s the best way to shop prices?

    • I can tell you what I did! I requested insurance quotes based on my Allstate policy limits and coverages. I compared apples to apples and discovered that Allstate was charging me twice as much as another insurance company.

    • james says:

      call your local independent insurance agent. independent agents work with more than one company and they can shop around for you.

  6. John M says:

    I just received my homeowners insurance renewal for the end of September. My insurance went up $146 or 23%. I live in upstate New York. I called my agent and asked why as I had been with Allstate since 1970 and have never had increases of that nature. She told me that there was a rate increase for catastrophic reasons. I’ve not had any and have not filled a claim in years. I told her that if this were the case that I would be looking elsewhere. The agency deals with 20 insurance companies and that she would do some research for me. I’ll see what happens. Just amazing to me!!! Wonder what their profit rate was this year!!!!

    • In addition to the comments from readers, I received several phone calls from individuals complaining of this material increase in homeowners insurance.

      I shopped around and found a virtually identical policy for my home and autos with another insurance carrier, savings much money. If I had remained with Allstate, my premiums would have been twice as much.

      The Barefoot Accountant

    • Joe says:

      Why wasn’t your agent looking out for you in the first place. I would be looking for another agent.

  7. MJW says:

    I got my newHomeOwneres Renewal notice on Aug 27 2011 Rate went up 33%. Lived here 30 years now never had a claim. They have my cars, home, life, and a landlord policy. If they don’t want to drop this back to something reasonable I’ll be looking too.

    • I switched to Liberty Mutual Insurance and for the same coverage and limits, I am paying one-half of what Allstate would have charged me this year!

      The Barefoot Accountant

      • Pam Belmore says:

        I just got over an 80 percent increase for my homeowners with Allstate,never put in a claim and have been with them for many,many years.Where can I go to get homeowners and car insurance as I have my car insured with them too.I can’t believe they can do this,we are in a financial bind right now,nice time for this to happen..Thanks Allstate..I’ve been a loyal customer for 30 years…This is the thanks I get.If anyone knows of a good company please let me know..T
        hank You

  8. Jim Kinnard says:

    I also just received a premium increase on my homeowners insurance (Allstate) of about 35% , I’ll be shopping around, Thanks for the info, Jim (California)

  9. Jean says:

    not condoning the 25%-35% but ours went up from $881 to $1836 for the new year!!!!!!!!!!!!!! all because we renovated our very outdated house of 30 yrs!!!!!!!!
    new cabinets/counters, new roof, central air system etc……..I’m POd!!!!!!!!

    • Wow! You certainly have a right to be! That’s why I wrote the article, and the response from many has been very enlightening to me and others.

      Thank you, Jean, for contributing your information. I hope you found another homeowners insurance carrier.

  10. bob frazier says:

    My Allstate policy, which is the same coverage as last year, is going up from $960 a year to $2,496 dollars. I live a mile outside of a college town in NE Oklahoma, Tahlequah, and am 2 miles from the Tahlequah fire department, a dependable department. But Allstate has changed my coverage department to the Welling fire department, a rural volunteer department located 8.5 miles from my home. I was told that the ‘rating’ for my home, on a scale from 1-9, 1 being the best, my rating went from 4 with Tahlequah to 9 now with Welling. This is a true story, I have been a customer with Allstate for 23 years, paid on time, never late. Thanks, Bob

  11. Nikki Hudson says:

    I’m currently with Allstate for homeowners and car insurance and was floored when my homeowners insurance went from $500 to $893 a year. I am currently shopping around for new insurance and will be sure to look into Liberty Mutual as well. Thanks for the great info and comments/suggestions.

    • Thank you for sharing your information about Allstate. We need to get the word out about how Allstate has its hands in our wallets and pocketbooks.

      Liberty Mutual saved me a bundle. And processed by claim without interrogating me and holding up payment like Allstate did for a mere $125!!!!

      I would never trust Allstate again.

  12. Donna says:

    My homeowners went from $766 a year to $1389! That’s almost double!!! Just because I live 6 miles from my fire department. I live in Tennessee and have been with Allstate for 30 years! This is just plain wrong! I think the Insurance companies have too much power. I think our Congressmen need to look into this.

  13. Diana says:

    Our mortgage company just informed us that Allstate is raising our homeowners insurance over 50%…from $1,308 in 2011 to $2,012 in 2012…resulting in a large escrow shortage. Allstate hasn’t bothered to call or send notice of this fact or attempt to explain the large increase. We have been an Allstate customer for 26 years but this is going to mark the end of that relationship.

    • tina says:

      Im in the same situation you are in it happend to me last year owing over 1000.00 to my escrow and now this year my homeowners insurance is going up again but allstate already sent my mortgage company what insurance will be for the coming up year and it is not even the same as what Allstate sent me. So there for my escrow will be short for next year as well then I’ll end up owing even more money next year. Nothing you can really do about it but pay them there money. If I were you I would make sure you watch every statement for your mortgage account and your allstate account to make sure there taking out enough. Good luck to you and your family on the American dream. Ive lost all faith in this company and the American Dream.

  14. tina says:

    I have both homeowners and car insurance for the past 3 years our homeowners insurance has gone way way up what is the deal with this I don’t understand how Allstate can get away with doing this to people. The American dream of owning a home has become a nightmare. If I would had know what I know now I sure would’nt have got myself into this mess of owning a home.

  15. Melissa says:

    We just received our bill for homeowners for the upcoming year and the premium was to increase by almost double!!! We too have never had a claim and had been w/ allstate since purchasing our new home in 2007. When I called to ask why, they said our “new homeowners discount ran out”, we no longer had auto on our policy AND due to the increased number of claims in the state of Maine (by other people)!! So, others are making claims and we are paying for it??? We have not had any natural disasters in Maine as far as I’m aware. I cancelled my policy as of midnight, after obtaining insurance for less than our premium from allstate last year (better coverage too)!! We also went w/ Liberty Mutual.

  16. pat says:

    Experienced the same thing – jumped $500.00 Trying to get with another insurance company but . .
    Two theft charges showing up (not showing with current ploicy holder) that we’re disputing. Being told we have to call some other company, request some report and fight it – which could take weeks or months. This is ridiculous. And of course Allstate isn’t providing any information or feedback. Good hands my ***

  17. Tom says:

    FYI: Mine went up 42% this year; 80% over the last 2 years. Just for fun, I wrote to Allstate’s CEO and told him the person responsible should be fired! Since I live in a state ( GA ) where the insurance commissioner rubber stamps all increase requests, his employee should have at least gone for 50-60% last year! Only doing 425% was a disservice to the Allstate shareholders!!!

  18. Tom says:

    FYI: Mine went up 42% this year; 80% over the last 2 years. Just for fun, I wrote to Allstate’s CEO and told him the person responsible should be fired! Since I live in a state ( GA ) where the insurance commissioner rubber stamps all increase requests, his employee should have at least gone for 50-60% last year! Only doing 42% was a disservice to the Allstate shareholders!!!

  19. Tom says:

    Sorry for more comments, but I just got Liberty quote that is 13.8% higher than my new high Allstate quote. Guess all states are not the same.

    • I saved 50% with Liberty Mutual.

      Call the office in Farmington, CT: 860-409-9140

      • Tom says:

        Good evening. Took a while for all to shake out, but end result good. Out of the blue, I got e-mail from a local Liberty agent with a much better quote than the internet provided. I don’t know if this is a routine problem or not.????
        Anyway, signed car / house policies last Thursday for savings over the next 12 months of $519.90. Will actually be better than that since Liberty car policy is 12 months, and I compared it to 2 times Allstate’s 6 month policy. Know for sure it would go up again after 6 months.
        Thanks for the web-site; I am so glad to get the “good hands” out of my wallet!!!!!!!!!!!!!!!

  20. Larry says:

    Ours went from $819 per six months in 2010, to $963 last year, and now $1351 this year before a new 5% discount dropped it back about $100. That’s a 65% increase in two years. I thought there must be some mistake, but when I called my agent she said it was due to a general rate increase. We’ve had Allstate for 30 years or more. We’ll be looking for a new carrier for both the home and automobiles.

  21. James says:

    Allstate just created a new homeowners policy that have great rates. If you have a new roof 2-3 yo I would look into it. State Farm just went sky rocket on us. We are saving 500 a year now

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>