State Farm Gets Rate Increase in Fla.

October 21, 2002

State Farm Insurance Co. is expected to resume writing new homeowners insurance policies in Central Florida and other parts of the state on a limited basis after being granted a 23.3 average increase for homeowners premiums. According to the Orlando Sentinel, State Farm is Florida’s largest insurer.

As a result of the rate hike approval, Orange County will see 13.2 percent rise in State Farm rates; Osceola, 17.6 percent; Seminole, 13.2 percent; and Volusia,27.9 percent.

The Florida Department of Insurance initially rejected the company’s most recent request for a rate increase and in June State Farm stopped writing new homeowners policies in the state. The department approved 14.3 percent rate increase last January.

Ruling on an appeal by the company, a three-person arbitration panel decided 2-1 in the State Farm’s favor but forbade the company from raising rates for any one homeowner more than 42.5 percent

The insurer reportedly will not resume offering homeowners policies in South Florida and the Tampa area but may write new policies the Panhandle and some eastern coastal counties on a limited basis.

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