UPDATED: Friday, April 13, 2012 - 9:53am
WACO -- Some Central Texas homeowners will be paying more for coverage in 2011. A step being reviewed by the Texas Department of Insurance.
By Jan. 20, homeowners will be paying about $64 more for Allstate insurance coverage. A number not surprising to Frank Slavik, a homeowner whose roof was damaged after a hail storm in March.
"They took care of me on that point, and the people that did the job did a good job on it. So, I think I'll just stick with Allstate because of that reason," said Slavik.
$5,000 is what it took to fix Slaviks roof after that storm. Paying for cases like Slavik's is one of the reasons Allstate says they need to charge more.
Allstate insures thousands of homes that were damaged by storms in Central Texas this year, and the agency says the increase is to make up for money spent on repairs.
Some customers don't see the need for the 5.4 percent increase, saying rates rise no matter what happens in the environment. One Allstate agent, Mel London, explains, the damage our region gets can't be paid for if the company doesn't make a profit.
"When you have a claim, you want that claim paid, and somebody has to have the money to pay that claim out of. So, yes, it is justified because of the region we're in," said London.
Allstate reported to Reuters profits of $367 million in the third quarter, a 66 percent increase but say rising costs with hurricanes and other storms across the state are the reason for their decision.
Texas Department of Insurance is now reviewing the rate filings for the increase.