Farmers Insurance has filed for a 3.9 percent rate increase for homeowners insurance coverage in Texas.
The Dallas Morning News reports that Farmers’ filing with the Texas Department of Insurance will affect about half the company’s customers in Texas. Farmers’ spokesman Luis Sahagun said the rate hike is needed to handle the increasing cost of claims in Texas.
The new rates will go into effect in March. It will affect customers who have either the Texas Family Home Policy or the Farmers Next Generation Homeowners Policy, or about 324,000 customers.
An insurance department spokesman said actuaries will review the company’s filing to make sure the rate hike is justified. An insurer can increase premiums once it notifies the agency.