In its “Straight Talk About Insurance” column on its Web site, the Texas Department of Insurance has updated information on the decision to approve an increase in State Farm Insurance Company’s homeowners insurance rate.
On March 31, 2008, the TDI approved an average 2.8 percent increase in the company’s homeowners premiums. State Farm’s filing includes discounts for some customers (e.g., multiple lines customers with home and auto policies).
State Farm had originally filed for an average statewide increase of 9.1 percent, which was disapproved by TDI. In a subsequent challenge to the disapproval, administrative law judges concluded that a 3.6 percent statewide average increase was likely justified, rather than the higher rate filed by State Farm. After discussions with TDI, State Farm further reduced the filing to 2.8 percent.
The current rate increase does not resolve the ongoing dispute over a 12 percent rate reduction ordered by TDI in 2003, nor does it preclude additional or future regulatory action by TDI.
Policyholders should be aware that rates may vary from the statewide average in some areas of the state. TDI encourages consumers to shop and compare when seeking to buy or renew insurance coverage.
Source: Texas Department of Insurance
Topics Texas Pricing Trends Homeowners
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