Company has filed notice with the state that it will hike its homeowner policies by 14.4% in the region
State Farm Insurance has filed a notice with the state that it will hike its homeowner policies by 14.4% in Dallas – reported in Dallas News.
State Farm officials blamed the boost on a slew of spring storms unleashing hail damage in North Texas, as well as the rising price of building materials. Statewide, the rate increase averages about 8.5%, with the new rates hitting existing customers when they renew policies after October 1. New customers will pay the higher rates starting September 1.
But State Farm has been legally challenging a discount ordered six years ago, saying its rates always has been fair and competitive and they do not owe consumers a rebate. The case, which is awaiting a ruling from Insurance Commissioner, could cost the company as much as $1 billion.
Alex Winslow, executive director of Texas Watch, said: The reality is that the rates homeowners have been paying have already been deemed to be too high and the coverage has been significantly less. So in truth, homeowners are paying more for their insurance and getting less.