State Farm boosting home rates again, especially on coast, the Fort Worth Star-Telegram reports today.
“State Farm blamed the increase along the coast on the increased cost of reinsurance, which insurance companies buy to guard against the huge losses associated with hurricanes.
Galveston County residents who have both home and auto insurance through State Farm will see their rates go up by 7.9 percent, according to the Texas Department of Insurance. Those residents who have home insurance only will see their rates go up by more than 20 percent, according to the department. The department says State Farm will take in $42 million more statewide annually because of the adjustments. By contrast, the company estimates increased revenue at $35 million to $40 million.
State Farm has 29.3 percent of the home-insurance market in Texas.
In 2003, regulators ordered the company to roll back home rates by 12 percent, but it has refused and is fighting the order in court.”