Allstate wins 29% statewide rate hike in Miss.; resumes coastal writings excluding wind coverage

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Mississippi insurance regulators have approved a statewide rate increase of 29 percent for Allstate homeowner policyholders, the Northbrook, Ill.-based insurer reported.

The company, in a written statement, attributed the hike to the “increased costs of doing business in Mississippi due to the heightened risk of catastrophes.”

Allstate also said that it will resume writing new homeowner policies in Mississippi’s six southernmost counties for the first time since February 2006, but the policies won’t include coverage for wind and hail.

Starting May 21, coastal Mississippi homeowners will be able to purchase Allstate policies for fire, theft and liability coverage, but only if they have had an Allstate auto policy for at least 60 days.

The company says it will help coastal customers purchase wind and hail coverage through the state’s wind pool.

“As a major provider of insurance in the state of Mississippi, we feel it is important to take steps that help ensure we are in a position to continue to help protect as many of our customers as we responsibly can,” Allstate field vice president Ron Corbin said in a written statement.

The state Department of Insurance approved the statewide average rate increases of 29.5 percent for Allstate Insurance Co. and 29.6 percent for Allstate Property and Casualty Insurance Co. The new rates take effect on May 21 or upon renewal of a policy.

“We did not make this decision lightly,” Corbin said. “We understand the hardships our Mississippi customers have suffered during Hurricane Katrina and in other storms and catastrophes. We must charge rates that reflect the risk Mississippi faces every year.”