TALLAHASSEE, Fla. – April 11, 2011 – Florida regulators have approved an average rate hike of 18.8 percent for Florida homeowners covered by State Farm, according to state documents filed on April 8. The higher rates, which are less than the 28 percent boost State Farm sought, will take effect July 15 for renewals and June 1 for new business.
Separately, Insurance Commissioner Kevin McCarty approved a 62 percent increase for State Farm’s commercial residential policies.
While the rate increase was significantly less than it asked for, State Farm says it is not considering pulling out of Florida, as it did the last time a major rate increase was turned down in its entirety.
The rate approval “is an important step for State Farm Florida to remain viable in this marketplace,” said State Farm spokesman Michael Grimes. “We’ll continue to work with regulators and legislators to encourage market reform.”
State Farm has said that it needs to boost premiums for its 632,000 policyholders because of rising costs unrelated to hurricanes. One of the biggest complaints from State Farm and other property insurers is that sinkhole damage claims are driving up costs that far exceeding the premiums relative to sinkhole exposure.
Source: Bradenton Herald (FL) (04/09/11) Harrington, Jeff
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
Separately, Insurance Commissioner Kevin McCarty approved a 62 percent increase for State Farm’s commercial residential policies.
While the rate increase was significantly less than it asked for, State Farm says it is not considering pulling out of Florida, as it did the last time a major rate increase was turned down in its entirety.
The rate approval “is an important step for State Farm Florida to remain viable in this marketplace,” said State Farm spokesman Michael Grimes. “We’ll continue to work with regulators and legislators to encourage market reform.”
State Farm has said that it needs to boost premiums for its 632,000 policyholders because of rising costs unrelated to hurricanes. One of the biggest complaints from State Farm and other property insurers is that sinkhole damage claims are driving up costs that far exceeding the premiums relative to sinkhole exposure.
Source: Bradenton Herald (FL) (04/09/11) Harrington, Jeff
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
Really? State Farm is one of the companies that said they were leaving Florida? Yet they are still here.
ReplyDeleteSink holes? I rarely hear about them. THe majority of SInkholes are in Polk county. Just south of Zephyr hills where a bottle water plant is.
I think its a bogus excuss. He have not had any major hurricanes and the majority are very small. Unless the house falls in and is destroyed it wont make the news.
Sink holes are repairable and the vast majority of the time the house is repairable.