Texas / South Central News
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Farmers Plans to Raise Rates in Texas
Texas / South Central News • November 10, 2008
Farmers Insurance has filed for an average rate increase of 9.9 percent for homeowners insurance policies in Texas effective in February, state and company officials said.
The Texas Department of ...
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| Subject | Posted By | Posted On |
|---|---|---|
| RE: RE: RE: RE: RE: bumping values, rates or both? | Icee | Nov 11, 2008, 2:49 pm |
| RE: RE: RE: RE: bumping values, rates or both? | Confused | Nov 11, 2008, 1:41 pm |
| RE: RE: RE: bumping values, rates or both? | Icee | Nov 11, 2008, 1:31 pm |
| RE: RE: bumping values, rates or both? | Confused | Nov 10, 2008, 1:59 pm |
| RE: bumping values, rates or both? | Charles Educa | Nov 10, 2008, 1:40 pm |
| bumping values, rates or both? | Confused | Nov 10, 2008, 1:07 pm |
| Back to article | ||
Subject: RE: RE: bumping values, rates or both?
My agent has me update my values annually to adjust for increased costs of labor and materials, he doesn't index, he recalculates them each year. My understanding is that the rate is used as the multiplier against the value to generate the premium. The rate relects the relative quality of risk and frequency of loss. If my values are being kept current, why would they need to increase the rate too? Are they going to forego the value increase in favor of the rate increase? If so, I wouldn't be maintaing adequate limits.