Hurricanes Not To Blame For Rate HikeBy Jeffrey Hess | Published 12 Apr 2011 01:25pm |
Some Mississippians are about to pay more for their home insurance. MPB'S Jeffrey Hess reports that the reason for the hike is probably not what you expect.
After two years of lobbying, Allstate Insurance has been approved for a 19.4 percent rate increase in Mississippi.
Company spokeswoman Allison Hatcher says it is not coastal hurricane risk driving the need for the increase.
"Specifically factors like frequency of losses from home fires, home burglary, water damage and liability claims throughout the state drove the need for the rate increase," Hatcher said.
Companies are also changing how they rate fire risk, figuring a much higher risk for anyone living outside a city with a fire department.
Insurance Commissioner Mike Chaney says that change is driving up costs in Central and Delta areas of Mississippi.
"And we are trying to prevent them from doing that if they are in an agreement for a fire department to go and put a fire out or areas with a proper volunteer fire department," Chaney said.
Even with this increase, the company plans to drop 5-thousand costumers...only 150 of those will come from coastal areas.
*Photo courtesy allstatenewsroom.com
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