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Hurricane Insurance: State Farm requests 47% rate hike on homes

Story Created: Jul 16, 2008 at 3:20 PM EST

Story Updated: Jul 16, 2008 at 3:20 PM EST

TALLAHASSEE, Fla. (AP) - State Farm is seeking a 47.1 percent rate increase in homeowners' policies in Florida.

The Illinois-based company is the largest private homeowners' insurer in Florida with roughly 1 million customers.

State Farm spokesman Justin Glover says the company has spent roughly $1.20 for every dollar collected in premiums in Florida since 2000 and the big increase was necessary to stabilize its Florida operation.

A spokesman for the state Office of Insurance Regulation says the filing is being thoroughly reviewed and that a public hearing on the State Farm filing will be held next month.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

View Oldest Comments First

Wednesday, Jul 16 at 9:26 PM already overpaying wrote ...

I saw this coming after Charlie. I've never had a claim, but my mother had slight damage, lost a few shingles, and a couple pool screens after Charlie. I told her don't bother, you'll never meet your 5k deductible. She called Allstate anyway. The adjuster picked at anything that could be claimed. She even argued with him that the outside counter tops were water damaged from years of being outside, Nope, adjuster claimed hurricane damage. She ended up with check for 8k. We'll end up paying in end

Wednesday, Jul 16 at 7:19 PM What happens if they leave wrote ...

If SF up and leaves Florida like everyone else has then who will insure our homes? Everyday I hear that Citizens doesn't enough money to cover their claims and no other company will sell insurance in this state. I find it funny that people have no problem paying $2000 - $3000 year on car insurance for their 3 cars per family but think that is way too much to pay for their home. I want to be able to buy insurance from someone who will pay me if I need it and there is nobody left.

Wednesday, Jul 16 at 4:00 PM Concerned wrote ...

This is a totally outrageous thing for State Farm to do. So many homeowners are on the brink of losing their homes if they haven't already. Not only will this increase the mortgage payments it will make more owners go into foreclosure. I have lived in Florida for 20 years and never made a claim to State Farm until Hurricane Wilma came along. But wouldn't you know it I had $4898.00 damages and my deductable was $5000.00. How many others found themselves in this same situation? Higher rates?