State Farm Insurance Co., the largest insurer of homes and cars in Texas, said it filed for an average 3.6 percent rate increase for its Texas homeowners’ insurance policies.
The filing includes larger multi-line discounts, which would be increased from 5 percent to 15 percent for customers who insure their homes and at least one qualifying vehicle with State Farm, the company said.
State Farm said that after discounts and other rating variables are applied, most Texas non-coastal policyholders would see a rate decrease.
The Texas insurance commissioner has 30 days to decide whether to approve the request.
Earlier this fall, two state administrative law judges rejected State Farm Lloyds’ plan to increase homeowner insurance rates by a higher percentage. They concluded that a 3.6 percent increase would be reasonable.
State Farm Lloyds said its increase request results from higher reinsurance costs that the industry is facing as a whole in Texas because of natural disasters. It noted that the Texas Department of Insurance recently approved a rate increase for the Texas Windstorm Insurance Association because it is facing those higher reinsurance costs.
State Farm is asking that effective dates for the new rates be March 1 for new business and May 1 for renewals.
Banks Still Face Legal Claims After $25 Billion Settlement
MF Global Judge to Examine Insurance Payments for Former Executives
Daredevil CEOs May Put Companies at Risk
California Independent Contractor Law May Be Liability for Agents, Brokers
North Carolina Continues Auto Regulation Debate As Rates Stay Same for 2012
Long-time California Lobbyist Looks to 2012 Legislation Affecting Insurance
Mine Safety Chief Seeks to End Complacency Over Safety
Virginia Court Grants Rehearing of Global Warming Claims Case
