LABELLE, FLORIDA -- Allstate Insurance's subsidiaries have cancelled tens of thousands of homeowner insurance policies in Florida, including a lot of Hendry and Glades county residents. Agents are now attempting to substitute a new company to replace Allstate, a company called Royal Palm. Many homeowners are being surprised to find the new policy premium cost is now three to four times what Allstate policies were last year.
New state insurance rules voted on by the legislature are politician's attempts to help keep insurance rates down...but be careful, as your agent is most likely not going to bend over backwards to explain anything to you. Their goal in most cases, is to sell you the most insurance they can, at the highest rates allowed.
One new rule you're not going to hear from them is that Allstate or any other company can not cancel your policy until they file appropriate papers with the State Insurance Commissioner. Allstate has not yet filed, although one agent claims they are to file next week. After the company files they have agreed to give all customers written notice that the policy will expire in 100 days. Agent we have spoken to don't tell customers this, they are just selling newer policies to customers. Although Allstate has already told customers they will be cancelled in mid-April and agents are telling customers this, it isn't true. Allstate and other must continue the policies until after the new notice is given.
Because of the new rules enacted in late January, homeowners have been asking "How much will my insurance premiums go down?" after the Florida legislature passed new insurance rules. With much hoopla and bravado, the Governor and state politicians raved on how great the new law would be to save Floridians money on home insurance.
Unfortunately, the politicians are not telling the whole story. Chances are the average homeowner will not save any money on insurance. The new law basically allows homeowners to elect higher deductibles and to waive windstorm coverage. However, for those who wish to increase their risk while saving a few dollars, many hoops have to be passed, including getting permission from your mortgage company.
Other reasons for why any immediate savings are not going to happen are included in the 176 pages of new rules as published by the state legislature. The lawyers, legislators, and lobbyists who had a hand in writing this, included a dizzying display of differing dates as to when the many parts of the new laws go into effect, March 1, April 1, August 1, etc. It will take many months for industry lawyers to figure out exactly what is supposed to happen in respect to the new regulations for insurance companies.
In summary, don't expect to save any money on your home insurance unless you are willing, and have permission from your mortgage company, to take on more risk in the form of higher deductibles or eliminating windstorm damage coverage. And don't let your agent tell you your insurance is not being renewed unless your company has actually filed with the state and gives you 100 days notice. Once again citizens flim-flammed by the insurance industry and politicians?
I just got my cancellation notice in the mail from Allstate today.
ReplyDeleteI may not have much power to do anything about my homeowners insurance, but I will still be making my power of the purse known. I will be cancelling my auto insurance with Allstate.
I know this is just a blip on their radar...but I won't be sending them any more money.