Louisiana Insurance Commissioner Jim Donelon has approved an overall base rate decrease of 3.5% for homeowners policies issued by State Farm Insurance Co. in Louisiana.
State Farm provides homeowners’ coverage to more than a quarter of a million policyholders in the state, according to the Louisiana Department of Insurance.
The LDI reported that homeowners premiums overall in Louisiana have risen by 1% year-over-year for the past six years. The department said it is a direct result of Louisiana adding 31 new insurers writing homeowners coverage in the state during that period.
State Farm previously this year had been approved for a 2.3% decrease in auto insurance rates in Louisiana.
The company also has implemented decreases of 4.5% in 2018 and 6.5% in 2019, for a total rate reduction of 13.3% over the past 18 months. State Farm provides auto insurance for more than a million Louisiana policyholders.
Donelon said State Farm’s auto insurance rate reductions have led to decreases by other major insurers in the state’s private passenger market.
In a statement released by the LDI, Donelon said he believes State Farm’s homeowners rate decrease will produce a similar result in the state’s homeowners insurance market.
The effective dates of State Farm’s rate reductions are May 1, 2020, for auto policies and July 1, 2020, for homeowners policies.
Topics Louisiana Homeowners
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