Allstate Insurance Co. officials in Rancho Cordova announced Monday that the insurer's more than 1,200 California exclusive agents will now have another homeowners' coverage option for customers.

Allstate stopped writing new homeowners' business July 1, but Allstate's agents have been able to refer their customers seeking new policies to Pacific Specialty Insurance Co., a third-party insurer not affiliated with Allstate.

Allstate agents receive commission from those sales.

As of Monday, Allstate agents also can refer their customers to Tower Group Cos., another third-party company not affiliated with Allstate.

The expanded market agreement with the second insurer provides Allstate agents with more options to offer their customers, local Allstate spokeswoman Patti Kelly said.

In the four-county Sacramento area, Allstate has 50 exclusive agents. Allstate's announcement came on the first day of the California Department of Insurance's hearings in San Francisco on Allstate's request to raise home rates by an average of 9.3 percent, or an estimated $77 million in annual premium. Consumer advocates oppose any increase.

Allstate requested this rate hike in September 2006. Allstate hasn't increased homeowners' insurance rates in more than four years.

Allstate imposed the moratorium on new policies as part of a continued effort to reduce its risk associated with offering property insurance in catastrophe-prone California.

Allstate still sells condo rental coverage for new customers, and continues to renew homeowners' and landlord package policies of existing customers.

Before Allstate, the last time a major insurer stopped accepting new homeowners business in California was in 2002, when State Farm Insurance Cos., the nation's and state's largest home insurer, did so. That freeze, which occurred when toxic mold claims were rising, lasted about a year.

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