State Farm Proposes Homeowners Rate Hike

State Farm insurance informed Texas insurance regulators Wednesday that it will raise its homeowners insurance rates by an average of 8.5 percent.

State Farm said it'll implement the new rate for new customers Sept. 1 and for existing customers upon renewal after Oct. 1.
The Texas insurance commissioner has 30 days to decide whether to approve the request.

About one-third of State Farm's 1.2 million Texas ratepayers will see rate decreases or no change, the company said.

State Farm Lloyds Senior Vice President Mike Wey cites higher repair costs and a total 2008 Texas claims of $1.4 billion. It was a year that saw hurricanes Dolly and Ike and a streak of damaging spring hailstorms hit the state.

State Farm said it's paid $572.8 million in weather-related claims through May 2009.

Copyright AP - Associated Press
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