State Farm Seeks Rate Increases In Property Insurance

Citing deep losses and operating expenses, State Farm has asked state regulators in Florida on Tuesday a 28 percent premium to its policy owners.

Sinkhole claims, which are almost 2 billion dollars over the past five years, Florida has shot a very high cost to the insurance industry.

When asked the actuary was Bob Lee, manager of State Farm testified that he lost $ 327000000 last five years, most of the last two, on behalf of sinkhole claims only. The company calculates its sinkhole coverage in standard policies, but offering to pay separately for housing.

However, the insurance consumer advocate of the state was in conflict with State Farm on reducing the number of policyholders should get a sinkhole coverage is removed from politics.

State Farm sought to discount policies around $ 150 on average, but actuary Steve Alexander testified at the hearing two hours of finding it should be at least twice.

Alexander said that the State Farm agent commissions to pay well above the national average, adding unnecessary costs to operate in Florida.

If approved, new rates will become effective upon April 1 for new business and July 1 renewals.

State Farm also asked the number has increased by almost 96 percent and less than its book of business rental apartments. It holds about 50000 such a policy now.

Deputy Commissioner said Robin Westcott Office of Insurance Regulation will likely have a decision on requests for State Farm for two to three weeks.

State Farm has reached an agreement a year ago to cut ÖIR policies 125 000 over 18 months to reduce the liability of a hurricane prone Florida.

State Farm is the largest private property insurer in Florida with just over 500,000 subscribers. The state with the support of the citizens of Property Insurance Corp. is the largest with 1.2 million policyholders.

State Farm and the IRO had disagreed on the price, but the Legislature of Florida lodging options for private insurance companies, hoping somehow to reduce the increasing risk of a citizen more and more, supported by assessments on most insurance policies sold in the state.

Dozens of start-ups have changed in Florida in the last decade to try to reduce the participation of citizens.