Why is our home insurance premium sky-high?

Disclaimer:  What you read here are my recollections and opinions of events that I experienced with Allstate - and should not be considered statements of fact.  

A Tale of Obfuscation and Frustration

Note: This account is based on my recollection weeks after the events. While the words may not be verbatim, the core details and sentiments are true to the experience. For brevity, I’ve highlighted only the most relevant parts of this ordeal to convey the essence of what transpired.


This isn’t just a story about premiums; it’s about principles. When loyalty is met with exploitation instead of appreciation, and customers are left questioning not just a company’s pricing but its values.

Allstate Canada, in its "Code of consumer rights & responsibilities" states that:

 "You also have a right to know how 

insurers calculate price based on relevant facts." 

The problem

Following the death of Mijo, my father, the head of our household, my family faced many challenges, but one thing we didn’t expect was to feel betrayed by a company we’d trusted for 30 years. When the bill for our home insurance arrived, Ljubica, my mother, nearing 75 years of age, noticed something unsettling—her property insurance premium had risen by $281 (10.9%) over the previous year to a staggering $2,859. I looked at old invoices and realized that my mother’s premiums have been rising at an alarming rate for years. Shocked by increases that felt downright punitive—I reached out for answers. What followed was a journey through a maze of obfuscation full of vague explanations and unhelpful responses.


Our attempt at solving the problem

Our journey began with a call to my local Allstate agent, but instead, I was routed to a central customer service centre. When I asked why our premium had skyrocketed over the years, I was given vague answers about climate-related issues in Alberta and the East Coast. Puzzled, I pressed further—how could events thousands of kilometres away impact the risk for our home in Mississauga, Ontario? The response was a confusing explanation about “insurance ratios”, “risk profiles”, and other industry mumbo-jumbo, none of which clarified the situation.

Undeterred, a few days later, I called again, this time to explore ways to reduce our coverage and reduce the exorbitant premium. What I learned left me even more baffled. I was told that our policy included a rebuild cost of about $830,000 — which is understandable — yet somehow also carried $1.4 million in “enhanced water damage” protection. I asked, why do we need $1.4 m water damage, which far exceeds the full rebuild value is only $830k, and proposed to decrease it to $250,000. I was bluntly told it could not be adjusted—“that’s just the way it is.” The call ended with no actionable options to reduce the premium. The lack of transparency was infuriating. The two conversations felt like they were designed to confuse rather than clarify.


Escalation

Feeling stonewalled (receiving vague and evasive answers) by Allstate, I decided to look elsewhere for insights. I reached out to other insurers and received quotes from TD Insurance and Desjardins that came in between $1,600 and $1,700—far more reasonable than the $2,859 Allstate was demanding. Friends and family told us that their premiums were far lower. My sister pays about $1,600 for a house that is much more valuable than ours. Everyone was shocked to learn how much Ljubica is paying

Still in the dark about why the premium is so high, suspecting that there must be a mistake in Allstate’s calculations, lacking trust in Allstate customer service, I decided to escalate the issue. I decided to communicate our concerns directly to the CEO - the person with ultimate accountability. London Bradley, an American, is the President and CEO of Allstate Canada. I wondered, are there are no Canadians qualified to run the Canadian arm of Allstate.

On November 11, I sent an email to London Bradley (lbradley@allstate.ca), outlining our concerns. I began my email with a blunt truth: “Typically, companies REWARD long-term customers for their loyalty but sadly, it seems that Allstate seeks to MILK their loyal customers.” I shared our experience with Allstate and asked: “Would Allstate rather receive $1,600 per year from my loyal mother, or treat her like a CHUMP and $0?”

Mr. Bradley didn’t respond. Instead, Tammy Dockery, the agency manager for Mississauga South, reached out, informing me that my concerns were forwarded to her. Our lengthy conversation, Ms Dockery admitted that the premium is unusually high but her explanations left me no closer to answers. Instead of clear explanations, I encountered more jargon, more ambiguity, and still no insight into the problem with the my mother’s premium.


The Breaking Point

We waited patiently for good news but none arrived. On November 21, with the payment due date looming, I decided to try a different approach. That morning, I ran a test: requesting an online quote for our house from Allstate as if I were a new customer. The result? $1,704 annually—a staggering $1,155 less than my mother’s renewal premium. I emailed Ms. Dockery, informing her that: “I did a test to see how much we would be quoted for insurance as "new" customers. [Below is the quote we received]. This is $1,704 per year which is a LOT less than the $2,859 you give us as 30 year customers. Can you explain that?”. Within minutes, Tammy replied that she was busy with meetings but would contact me by the end of the day, and that she had forwarded my concerns to the Allstate “ombudsman”.

While I was writing to Ms Dockery, a mere 15 minutes after receiving my quote, I received a voicemail from a local Allstate agent that received my online quote and he told me to contact him. I was impressed with the speed at which Allstate tries to land a sale. Disappointed with Ms Dockery’s responses, I decided to visit the local Allstate office to speak with the agent that left me the message..

When I arrived at the Allstate office, the receptionist told me that no one was available to speak with me. Then, a woman came to speak to me. I was surprised that it was Ms. Dockery herself— who seemed far less busy than her email suggested. Our in-person conversation was filled with industry jargon but no clear answers. One of her comments stuck out: she suggested that my “insurance score” might be better than my mother’s. I asked for specifics, but Ms Dockery did not provide any. I left the agency, feeling treated in a demeaning and dismissive manner, with no answers and no solution to our problem.

While driving home, I wondered how could I, who has never had property insurance, possibly have a better insurance score than my mother, who has been an Allstate customer for 30 years and never paid the insurance bill late. Curious about “insurance scores”, via email I asked Ms Dockery “Can you tell me what my insurance score is and what my mothers score is?” She did not provide an answer. I called Allstate customer service and learn my insurance score but but privacy concerns were cited as a reason not to disclose this information. I was flabbergasted! My insurance score is so private that not even I am allowed to know what it is.

At the end of the business day, I sent another email to Mr Bradley, cc-ing Ms Dockery, informing him of my experiences with Allstate that day and letting him know that: “At every turn - it seems that Allstate is trying to actively AVOID fixing this problem. Even when I showed that there is a problem and showed an online quote for a new customer that is reasonable Allstate still continues to fight against fixing the problem. My experience is so bad that I started wondering - does Allstate hate my mother - a long time loyal customer?” Again, Mr Bradley did not reply.

Minutes later, Ms Dockery sent me an email informing me that the issue is with the ombudsman’s office for further investigation. Again, I asked “Will you provide me and my mother with our insurance scores? What are the factors that make up that score?” I did not receive an answer.


Moving closer to the truth

As night fell, determined to uncover the truth, I dug into the concept of “insurance scores.” After a bit of “googling”, I learned that an insurance score is an assessment of the riskiness of the person and not the property being insured. Next I discovered that insurance companies use personal credit scores as a factor in the insurance score. This revelation was confusing. Why should a person’s credit score, a measure designed for assessing debt repayment risk, influence property insurance premiums, especially when premiums are paid in advance? Why should a credit score matter for a customer that has never paid a bill late?

To assess how much the credit score influences the insurance score, I ran another test. I requested another online quote from Allstate, this time authorizing a credit check. The premium dropped to $1,284 annually— a difference of $420 from the first quote in which I did not authorize a credit check. By this, I see that a person with an unknown credit score would pay 33% more than a person with a good credit score. One question remained - why is Ljubica, my mother, asked to pay more than twice as much as my good credit score quote.

That night, I sent Ms Dockery another email, asking: “I did the online quote thing again and this time I authorized the quote system to check my ‘Insurance Score’. This is what I received - even better than before. Can you explain this?”

That night, Ljubica spent a sleepless night worrying about how she’d been, for years, taken advantage of by a company she had trusted. After 30 years of trust, she deserved better.



A Final Thought

During the following days, neither Mr Bradley, the CEO, nor Ms Dockery, the local agency manager, cared to tell us the truth. 

It was clear: not only had Allstate failed to address the problem, but they also seemed intent on avoiding it altogether. This troubling experience gave an insight into more than just an inflated insurance premium but into deteriorating corporate values, culture, respect — and exploitation of customers.

Sadly, Allstate Canada's Code of consumer rights & responsibilities appears to be meaningless - puffery full of empty promises.