Folks in Florida may not be looking at State Farm as a good neighbor much longer.The insurer announced that it is seeking to raise premiums by an average of 47.1 percent statewide. Getting that done, though, may not be easy. State regulators have not approved a requested rate increase in over a year.
State Farm said it has to raise premiums by the requested average due to its ability to pay claims following a hurricane being crippled. The insurer said last year's state request that it drop its rates (an average of 9 percent), along with hurricane mitigation efforts, allowed many residents to receive discounts on their coverage, therefore impacting the company.
According to State Farm, more residents received discounts than the company had expected to.
The insurer, which will make its case before a public hearing on Aug. 12, offers coverage for more than 1 million homes in the state.
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2 comments:
I've heard some other carriers are considering raising rates. The era of soft market rates might be ending. We'll keep an eye on it.
And also considering all those California fires the past few years I would have to think other insurers would be considering rates increases too. If this goes through other carriers are likely to raise rates.
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