New state insurance regulator Eleanor Kitzman has approved big rate changes for State Farm's line of homeowners insurance.
On Dec. 1, State Farm is now authorized to switch many of its Texas homeowner policies from a $1,000 deductible to a deductible that is 1 percent of the home's insured value.
Kitzman also allowed an average increase in homeowner rates of 10 pecent as well as an increase in minimum wind and hail deductibles from $500 to $1,000.
There is some good news for customers, however. State Farm also increased auto/home discounts from 20 percent to 25 percent while increasing discount amounts for various hail and wind deductibles.
The insurer also decreased rating factors for frame constructions by 4 percent and increased rating factors for masonry veneer constructions by 1.9 percent.
New customers have paid the higher rates since Oct. 15. Existing customers will see the new rates go into effect Dec. 1.