State Farm requests insurance increase
TALLAHASSEE, Fla. – June 28, 2012 – State Farm has requested an average increase of 15 percent on its homeowners policies in Florida, its sixth rate hike request in less than three years. According to an analysis of the request by the Sun Sentinel, the increase, if approved by the Florida Office of Insurance Regulation, would average 14 percent for single-family owners, 49 percent for renters and 27 percent for condo owners. State Farm says the actual premium cost for a homeowner will vary, however, because it’s also bringing back a handful of discounts. The biggest one – a 10 percent cut in cost – would be granted owners who also use State Farm for their car insurance, for example. The company also says that a homeowner facing a 14 percent price hike could cut it down to 3 percent by opting for a higher deductible. According to State Farm, it needs permission to raise prices because its “financial position has deteriorated significantly over the past several years.” The Office of Insurance Regulation has final say over the increase, however. It has a meeting scheduled for July 25 to consider the request.
Citizens Insurance, one of the largest with holdings in Florida is also instituting major rate hikes and possiblly dropping many of their insured due to the high risk and costs of offering coverage in our Hurricane Prone state.
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