Third largest home insurer in the state has requested a statewide rate hike to fund intended changes.
The third largest homeowners insurance company in Florida, State Farm, has submitted a request to increase its rates by 15 percent in order to pay for changes it hopes to make on the deductibles and discounts to its policies.
Some of these alterations include bringing back or increasing various types of discounts.
According to the company, these changes will require an average statewide increase in homeowners insurance policy rates by 14 percent, with an average increase of 27 percent to condo unit owners, and 49 percent to renters.
According to the regulators of the proposal, State Farm has submitted this increase proposal after already having received approval for increases over the last two and a half years for 28 percent, 14 percent, 7 percent, 19 percent, and 2 percent.
Over the last few years, State Farm has also gained permission from the Office of Insurance Regulation to drop 125,000 policies , as they were causing the insurer to lose its position as the biggest private homeowners insurance company in the state. It is now the second largest, covering 466,797 homes, which include 66,960 in Miami-Dade, Palm Beach, and Broward counties.
The top spot for private companies has now been taken by Universal Property & Casualty, based in Fort Lauderdale. The leading position overall is held by Citizens, which is backed by the state.
Should the proposed increases be approved, State Farm intends to reinstate a popular discount.
This would be available both for auto and homeowners insurance policyholders and it would provide those who are eligible with a reduction of 10 percent on their non-hurricane coverage if they have both forms of protection with the company.
According to Michal Connolly, a spokesperson for State Farm, this is “a positive option for customers.” Connolly added that “All of these changes are to better reflect what’s appropriate for that discount or option.”
The actual homeowners insurance rate increase that will be seen by each individual policyholder will depend on many different factors, including which discounts they qualify to receive, and the deductibles that they choose.