Top Texas Homeowners Insurance Provider To Hike Rates

Homeowners policies being provided by State Farm Lloyds, one of the top homeowners insurance provider in the state of Texas may increase up to 20 percent in the coming months.

Said insurance company had recently submitted to the Texas Department of Insurance their rate filing seeking to increase homeowners insurance premiums. State Farm Lloyds wishes to implement the said homeowners premium increase by November 1, 2012 for new customers and December 1, 2012 for their existing policyholders.

In a press release, State Farm said that it is seeking for an increase for the volume of claims and the cost per claims on homeowners policies in Texas are increasing. It even cited that roofing prices alone have increased to as much as 90 percent than that what it should have cost five years ago.

With the impending homeowners rate hike, State Farm Lloyds Senior Vice President Phillip Hawkins assured that their first priority is to keep their promises to their policyholders. “State Farm Lloyds must maintain its financial strength in order to keep our promises to our policyholders, so we can be there when they need us,” said Hawkins.

State Farm reiterated that no other states experiences more severe weather events than the state of Texas. Texas homeowners insurance policyholders according to State Farm are vulnerable to significant losses that can be brought upon by events such as hurricanes, hailstorms, high winds and wildfires.

The said homeowners premium increase will have a varied actual effect on each individual customer’s policy. The effect according to State Farm will depend on a number of factors including the home’s type of construction, the age of its utilities, and the optional coverages that a policyholder may add to their policy.

Based on the 2010 data from the Texas Department of Insurance, State Farm Lloyds holds the largest share of the state’s homeowners insurance at 29 percent with more than 1.5 million premiums written.