On my way out of town Friday, I filled my tank for $62.50 – exactly half of the monthly payment on my first car. I imagine State Farm policyholders in Florida are having similar thoughts about State Farm’s proposed rate increase.
After lowering rates 9 percent this year, State Farm, the state’s second largest home insurer, did an about-face Wednesday when it asked state regulators for permission to raise homeowners’ rates 47.1 percent on average.
The private insurer, with nearly 1 million policies statewide, said it isn’t generating enough cash to cover the claims that could result if a major hurricane strikes next year. In Hillsborough and Pinellas counties, State Farm has nearly 100,000 policyholders.
“Our current rates are inadequate and must change,” said Michael Grimes, a spokesman for State Farm Florida. “We’re making this filing so we can continue to do business in Florida.”
…State Farm Florida Insurance Co. says it needs to increase premiums to have the cash to pay claims if major storms strike.
The planned increase flies in the face of the Legislature’s efforts to curb property insurance prices that doubled or tripled in some cases after hurricanes in 2004 and 2005.
After I returned to my wired world on Sunday and saw Chip Merlin’s post, I realized I’d left town with this story still in draft – sorry – but now you get Chip’s perspective, Snookered Again, plus the news story. Continue reading “Florida homeowners slabbed by State Farm request for 47.1% average rate increase”