Insurance Giant to Raise Homeowners Rates in Illinois

April 28, 2010

If you get your homeowners insurance from Allstate Corp., you aren’t going to like this story.

The insurance company announced this week that is was going to raise rates on Illinois homeowners policies by 8.2 percent. That increase was filed last week with the Illinois Department of Insurance and will take effect in July. Homeowner will see an rise in their insurance bills of around $6 to $7 a month on average.

Allstate Corp., which is based in Northbrook, increased homeowners rates in our state last year, but so have a lot of other insurance companies, and you can blame the weather. Damage from strong winds, hail and other weather phenomenon have caused insurance companies to dish out more for claims than they get for premiums.

Surprisingly, Allstate recorded a $120 million profit in the first quarter of this year, but, for the first three months of last year, the nation’s second-largest insurer of homes and cars lost $274 million.

There’s good news too: The discount for customers who have more than one car and a home insured with Allstate is increasing from 12 to 15 percent; you can lower your premiums on car insurance with a new $2,000 deductible; and if you have car insurance with Geico, you can receive a 5 percent discount when you switch to Allstate.

Geico, who seems to be doing better than Allstate in the auto insurance department in Illinois lately, is owned by Warren Buffett’s Berkshire-Hathaway Inc.

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