State Farm Lloyds says it intends to increase homeowners rates in Texas by an average 20 percent.
The company announced it has submitted a rate filing to the Texas Department of Insurance. The actual premium change for any individual customer will depend on a variety of factors including home construction type, age of the utilities, and optional coverages the customer may have added to the policy.
The changes will become effective for new customers on Nov. 1, 2012 and on December 1, 2012 for existing customers. State Farm said it is making these changes because the volume of claims, and cost per claim, are increasing. Roofing prices alone have spiked almost 90 percent in the last five years.
Customers are encouraged to contact their State Farm agents for information about how their individual premiums will be affected.
The Associated Press has reported that State Farm Lloyds is under investigation by the Travis County District Attorney’s office, which has statewide jurisdiction in certain cases, for its handling of claims from Hurricane Ike, which made landfall in Galveston on Sept. 13, 2008.
The company said it disputes allegations of faulty claims handling and “is cooperating fully with the Travis County District Attorney.”
State Farm Lloyds added that it is continuing to “work to resolve our policyholders’ claims, including those that are in litigation.