Farmers Insurance Wants Steep Rate Hike in Texas’ Gulf Counties

Farmers Insurance has indicated it wants to raise home insurance rates 20 to 30 percent along the Texas coast, while reducing rates in many other areas.

The company’s rate filing with the Texas Department of Insurance on Dec. 12 indicated a net result of a statewide increase of 2.2 percent with hefty premium hikes in coastal counties and southeast Texas. Many other parts of the state would see modest reductions.

Michelle Levy, a spokeswoman for Farmers, said nearly 50 percent of the company’s 686,000 policyholders in Texas would see lower premiums under the plan.

“We feel good about the proposal,” Levy said. “We think these rates are fair and justified and represent what we need to be charging in the current Texas market.”

The new rates, which will be reviewed by insurance department actuaries, are scheduled to take effect Feb. 16 for new and existing customers.

The new filing comes five months after the company withdrew a proposed 6.6 percent increase in homeowner rates when the insurance department signaled that it would reject the plan.

Ben Gonzales, a spokesman for TDI, said the department will review the filing over the next two months and decide whether it is appropriate before the effective date.

“We’re still trying to work with the company,” he said.

Levy said the proposal reflects concerns an increased number of hurricanes and tropical storms will threaten the Texas coast over the next few years. The industry saw massive property losses from hurricanes Katrina and Rita in 2005.

Information from The Dallas Morning News: www.dallasnews.com

Latest Comments

• December 18, 2007 at 9:11 am

  AGENT says:

  FARMERS REALLY HATES TEXAS AGENTS,THEY CLOSED FOREMOST,THEY STILL OFFERING COVERAGE,BUT THE PRICE IS TOO HIGH......NOBODY WANTS A HOMEOWNERS POLICY WITH 5% DEDUCTIBLE.DM'S IN ... read more
• December 17, 2007 at 5:39 am

  You are no FIG DM says:

  What a bunch of crap you posted. Farmers is lowering rates for most of Texas homeowners. State Farm and Allstate are going up. In California Farmers stood out as the shing sta... read more
• December 17, 2007 at 12:14 pm

  DM from Northern California says:

  30% We should be so lucky. California has taken their third rate INCREASE in the passt year whereas State Farm and others have dropped rates. Farmers has really screwed their ... read more