State Farm Insurance Co., the largest insurer of homes and cars in Texas, said it filed for an average 3.6 percent rate increase for its Texas homeowners’ insurance policies.
The filing includes larger multi-line discounts, which would be increased from 5 percent to 15 percent for customers who insure their homes and at least one qualifying vehicle with State Farm, the company said.
State Farm said that after discounts and other rating variables are applied, most Texas non-coastal policyholders would see a rate decrease.
The Texas insurance commissioner has 30 days to decide whether to approve the request.
Earlier this fall, two state administrative law judges rejected State Farm Lloyds’ plan to increase homeowner insurance rates by a higher percentage. They concluded that a 3.6 percent increase would be reasonable.
State Farm Lloyds said its increase request results from higher reinsurance costs that the industry is facing as a whole in Texas because of natural disasters. It noted that the Texas Department of Insurance recently approved a rate increase for the Texas Windstorm Insurance Association because it is facing those higher reinsurance costs.
State Farm is asking that effective dates for the new rates be March 1 for new business and May 1 for renewals.
Topics Texas Pricing Trends Homeowners
Was this article valuable?
Here are more articles you may enjoy.
Beryl’s Remnants Spawned 4 Indiana Tornadoes, Including an EF-3: NWS 
Hard Market Conditions Expected to Ease in 2025 as Claims Inflation Softens: Swiss Re 
Progressive Q2 Net Income Skyrockets Over 320% 
Soccer Officials Arrested After Melee That Damaged Hard Rock Stadium in Miami 
