Allstate Corp. will have to lower its rates on California homeowner policies by 28.5 percent making an estimated $255 million in annual savings for consumers, the state’s Insurance Commissioner Steve Poizner said.
“In today’s sputtering economic environment, people need all the help they can get just to pay the bills,” Poizner said in a statement.
Allstate spokesman Peter DeMarco, in a statement, said the company was “disappointed” in the order but planned to comply.
Northbrook, Illinois-based Allstate had initially filed for a 9.3 percent increase in homeowners insurance rates, according to Poizner’s statement.
He ordered the rate reduction after an administrative law judge recommended the cut. Consumers will save an average of $242 per policy on an annual basis, according to the statement.
The rate order follows one earlier this year, forcing Allstate to cut its auto policy rates in California by 15.9 percent.
Allstate is the largest publicly traded U.S. insurer of homes and autos.
(Reporting by Lilla Zuill, editing by Richard Chang) (lilla.zuill@reuters.com;+1 646 223 6281))
California Homeowner says: 
Homeowner Rates says: 
Steven Tyler says: 
Banks Still Face Legal Claims After $25 Billion Settlement
MF Global Judge to Examine Insurance Payments for Former Executives
Daredevil CEOs May Put Companies at Risk
California Independent Contractor Law May Be Liability for Agents, Brokers
North Carolina Continues Auto Regulation Debate As Rates Stay Same for 2012
Long-time California Lobbyist Looks to 2012 Legislation Affecting Insurance
Mine Safety Chief Seeks to End Complacency Over Safety
Virginia Court Grants Rehearing of Global Warming Claims Case
