Allstate, Louisiana's second largest insurer, implemented astatewide mandatory 5 percent hurricane deductible on renewedhomeowners policies this month, the company said.

Meanwhile, an agents group said that while smaller companies areraising deductibles, bigger insurers have not raised deductibleamounts.

With the 5 percent deductible policyholders would, for example,pay the first $15,000 of storm damage to a $300,000 home.

Allstate consumers will receive a lower premium as a result ofthe 5 percent increase. Allstate will alter premiums "according tothe deductible increase," said April Eaton-Robinson, spokespersonfor the Northbrook, Ill.-company.

Allstate is the leading insurance company in increasingdeductibles, according to Jeff Albright, chief executive officer atIndependent Insurance Agents and Brokers of Louisiana.

"Allstate is the highest-profile company on the issue of raisingthe deductibles to 5 percent, but it's because they havesignificant market share," said Mr. Albright.

Smaller companies are doing it on a prospective basis, henoted.

Other small companies have gone to 5 percent deductibles orimplemented wind and hail coverage policies, according to Mr.Albright.

Larger companies--such as Allstate's competitor, StateFarm--have been less active in deductible initiatives, as "theyhave taken a moderate approach...and have restricted the writing ofnew business because they control approximately 35 percent of themarket in Louisiana," he said.

The 5 percent mandatory hurricane deductible policy took effectafter first being given the green light by the Louisiana Departmentof Insurance, only to be rejected by the Insurance RatingCommission in December 2006.