Insurance Quotes & Advice

Last week the Florida Insurance Regulatory Commission suspended Allstate’s right to write new polices in the state.  The reason given for Allstate’s suspension was their failure to comply with subpoenas issued by the state’s insurance office back in October.

The Florida First District Court of Appeal’s however granted a stay on the suspension earlier today.  Florida Gov. Charlie Crist was critical of the court’s decision, releasing this statement.

“For too long, insurance companies have ignored the needs of their customers and unfairly taken advantage of Florida homeowners.  I am disappointed by the recent action by the First District Court of Appeal to stay Allstate’s suspension. I urge Commissioner McCarty to act as early as Tuesday to show why the order suspending Allstate’s license should remain in effect.”

Florida’ government has been involved in an ongoing dispute with the insurance industry concerning rates in the state, some of the highest in the country.  The battle has become increasingly bitter in recent months as many companies sought to raise rates after a very quiet hurricane season.

It has reached the point where the governor has been looking into initiating a class action lawsuit against the insurance industry.

In welcome news to Florida homeowners, state regulators denied Allstate Insurance in their bid to raise property insurance rates by as much as 43% statewide. 

When the company filed for the rate hike October 1, Florida Gov. Charlie Crist was very critical of the company citing legislation the state passed earlier in the year to increased it’s Hurricane Catastrophe Fund by $12 Billion.  The fund gives insurance companies a cheaper reinsurance option and was expected to save the industry millions in the state.

While Allstate did lower rates earlier this year by 14%, regulators felt the company didn’t pass on enough savings to customers which was a prime reason for denying this rate increase.  The company’s stated that the reason for the increase was that it’s assets were not sufficient to meet all their claims in a worst case scenario.

It will be interesting to see what Allstate’s next move will be.  They do have the option of filing a petition for a hearing before the state’s Division of Administrative Hearings.

In the past, Allstate hasn’t been shy about leaving states that the company felt presented an unwarranted risk to it’s overall business plan.  Earlier this year the company announced it was leaving the property insurance market in California due to the high risk of wildfires in the state.

In a side note some industry analysts predicted insurance rates for all fields will either decline or remain flat for 2008.

There are many ways to save money on home insurance and here are some common tips and advice to keep in mind:

1. Don’t over insure your home

The rebuilding cost and the market value of a home are two entirely different things.  Even if your home is completely destroyed you will still have the underlying land value.  Take that into account before you decide how much insurance to purchase.  If you feel the need for extra insurance, check to see if an umbrella policy might be more suitable as it will significantly increase your coverage.

2. Increase your deductible

If you feel comfortable with raising your deductible, you could get significant savings on your monthly premiums.

3. Make sure that you’re getting the discounts you’re entitled

Companies offer many types of discounts.  If you have been with the same insurer for many years, they may reward you for that loyalty.  Check with your agent to see what types of home improvements you can perform that might lower your premiums.  Depending on the area you live in, check to see if your home may contain certain characteristics that make it more disaster resistant.  Your company may offer a discount if you’ve been claim free for a number of years.

4. Use the same insurer for your auto insurance

Many companies will offer both home and auto insurance and will give a discount if you purchase both from them.  Check to see if this is cheaper than having separate policies from different companies.

5. Get quotes from other companies

 It never hurts to check if you could get a better deal from a competitor.

6. Review your policy coverage

If the value of your possessions have depreciated over the years you may not need as much coverage as you once did.  It is recommended that you review your policy annually.

These are some of the ways that you can save on home insurance. Now this is by no means an exhaustive list and it is always good to check out consumer advocacy groups to get tips on where you can save money on this and many other matters. Happy savings!