State Farm Pushes for 28% Increase
Florida residents with home insurance may suffer a huge rate increase if insured with State Farm Insurance. The national home insurance company has proposed a statewideÂ increase thatÂ will beÂ considered by Florida’s Office of Insurance Regulation in February.
Second Increase in Just a Few Months
The company is pushing for a massive 27.7-percent increase for its homeowners insurance customers only months after increasing premiums by 6.6 percent.
While the rate hike is significant, the company says the increase is just an average. In other words, some could see lower rates and some could see rates that push past 28 percent.
Hundreds of Thousands of Policyholders Affected
The increases are to affect all 680,000 of the company’s FloridaÂ policyholders if approved. This number reflects those policyholders who have been allowed to remain with the company after it purged over 125,000 customers earlier this month.
At the beginning of January, State Farm eliminated thousands of policyholders to restructure its business. A part of the restructuring effort included increasing its interest rate to 15 percent at the time. Now, of course, that number has increased significantly.
Luckily, those residentsÂ who carryÂ auto insurance with the company are not in danger of increases.
There is no official word on whether the increases will be approved by the Office of Insurance Regulation. A hearing on the matter is schedule for Feb. 15. At that point, policyholders will learn more about fate of their home insurance rates and whether they will need to begin shopping around for new coverage if they’re not happy with the changes they see.