The state’s consumer advocate has challenged State Farm Insurance Co.’s 20 percent rate hike for Texas homeowners as being too high.
Public Insurance Counsel Deeia Beck on April 24 urged two administrative law judges in Austin to roll back State Farm’s rate increase affecting 1.2 million homeowners. She says the company imposed the rate hike in December despite good profits and a drop in claims.
State Farm attorneys say an even larger rate hike could have been justified due to weather-related losses in recent years. Company lawyers say Texas regulators did not object to the proposed increase.
Beck’s office says the average Texas premium should be $1,299 annually. That’s about $280 less than the company’s estimate.
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