Nevada Insurance Commissioner Scott J. Kipper has approved a rate change for homeonwers insurance premiums as filed by State Farm Fire and Casualty Co. The rate change will become effective on April 1, 2009, for new business and on May 15, 2009, for renewals.
Depending on the individual characteristics and coverage levels, this statewide average rate change will result in a premium decrease or increase for some of State Farm’s insureds, whill certain insureds’ rates will remain unchanged, the Department of Insurance indicated. The changes to individual premiums translate into an overall statewide average rate change of 0 percent. The change affects premiums for non-tenant homeowners, renters and condiminium unit owners. The maximum dollar premium change for an insured with specific characteristics will not exceed $50, the DOI noted.
State Farm’s rate change filing consists of the following components:
-A revision of subzone definition changes by using ZIP codes.
-Premium adjustments for optional coverages such as childcare and business pursuits.
-Offering increased optional limits for the fire department service charge.
-Changes to how the type of construction impacts the rate development.
Commissioner Kipper noted that the actuarial data furnished by State Farm in support of the changes suggests a downard trend in its current level earned premiums for Nevada in recent years. He stated that State Farm had filed several statewide average rate reductions in the past four years that have contributed to some insrueds seeing a cumulative insurance premium decrease of up to 30 percent during that time period. These reductions have played a contriubtory role in the downward trend of State Farm’s current level earned premium. He observed that Nevada has endured a relatively “light” catastrophe experience in the past few years regarding the perils covered under homeowners insurance.
State Farm Fire and Casualty Co. provides homeowners, renters and condominium unit owners coverage for approximately 111,195 Nevada policyholders, the DOI said. The last two Nevada rate changes for the company’s policyholders were a 4.5 percent statewide average reduction in 2007, followed by a 0 percent statewide average change in 2008.
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