Allstate creates new Texas homeowner program; limits mold remediation costs
IRVING, Texas -- The Allstate Corporation (NYSE:ALL) said its Texas homeowners insurance subsidiary, Allstate Texas Lloyd's, received Texas Department of Insurance approval on endorsements that provide broader coverage to the homeowners HO-A insurance policy. This will create a new product option called the "Allstate HO-A-Plus," which gives Texas homeowners customers a viable insurance product with coverage in between the two policy forms previously available in Texas -- the minimal HO-A policy and the more comprehensive HO-B.
Allstate www.allstate.com anticipates the HO-A-Plus will cost an average of 20 percent less than the current Allstate HO-B policy available today, which specifies limits for remediation of mold resulting from a covered water loss at $5,000.
HO-A-Plus will be the primary product offered by Allstate to Texas homeowners customers beginning in 2002. Allstate anticipates offering it to new customers in late January and to current Allstate HO-B customers at renewal beginning in March.
"This is good news for Allstate policyholders in Texas," said Gary Briggs, Allstate Field Vice President. "We applaud Commissioner Montemayor for allowing Allstate to offer Texans a new choice for homeowners insurance coverage."
Allstate has seen sharp increases in homeowners' insurance claims in 2001 for water losses and mold damage stemming from those losses. However, Allstate said that other factors independent of mold are also driving losses in Texas, forcing the insurance giant to significantly raise rates this year on its HO-B policy.
The general cost of construction and property repair has risen substantially in Texas. And the potential for property damage due to weather-related catastrophes such as hailstorms, tornadoes, wind, and hurricanes is greater in Texas than in almost any other state.