State Farm Looks to Increase Average Homeowners Insurance Premiums 19.1%

Posted in Home Insurance

January 18th, 2010

If you’re a homeowner living in Louisiana with a State Farm Fire & Casualty Co. policy, you could see your premium jump as high as 19.1 percent this year. That’s according to the Department of Insurance, which recently granted the insurer the right to raise rates at least this much. The increase could affect more than 295,000 Louisiana homeowners.

Why Is State Farm Increasing Rates?

According to State Farm representatives, the rate increase is based on the company’s projects of future losses and expenses. The insurer says that the statewide average increase is 19.1 percent; however, those in specific areas like Baton Rouge will likely see much lower increases – closer to 6.6 percent.

The insurer also notes that the increase may not have as big an effect on some as others depending on deductibles, policy limits and other factors.

How Much Will it Cost Policyholders

To get a more concrete idea of how much this will cost policyholders, State Farm noted that the increase would generate roughly $67.6 million for the company. This means policyholders could expect a rough increase of $229 for the year.

This is not the first year that State Farm requested to increase its rates. In 2009, the Insurance Department approved an 8.3 percent increase for the company and the year before it was approved for a 1.7 percent increase.