State Farm has gotten approval from the state insurance regulators to raise the policy premiums 50 percent in Florida. The scary part is that State Farm was asking for a 79 percent increase and had to settle for the 50 percent bump. The rates will effect new and current customers.
The rates, more than a $1,000 increase on a $2,000 premium, are effective Aug. 15 for new customers and Nov. 15 on renewals. State Farm Florida first sought an average 79 percent increase when it asked for higher rates in May, but the company withdrew that request earlier this month.
State Farm officials have said they sought the rate increase to enable the company to continue to underwrite coverage in the state. Other companies also have sought rate increases.
Allstate Floridian has pursued a different strategy, dropping Florida customers to reduce its risk from hurricane damage. Allstate has plans to drop 350,000 home policies. In March, the company had 529,000 Florida homeowners’ policies.
Nationwide has a pending request to increase rates by 71 percent on the 261,000 policies it has in Florida. via The Quad-City Times Newspaper