Posted: April 8th, 2011 1:51pm
By: Brian Culbertson, Agency Owner
Florida regulators just approved an average rate increase of 18.8% for Florida homeowners who are covered by State Farm. This according to state documents filed today. State Farm originally requested a 28% average statewide rate increase in Florida.
These new rates are to take effect July 1st 2011 for all new business and July 15th for renewals. State Farm also received approval for a 62% rate increase for homes that are owned by a person or business entity and rented to others.
At the present time, State Farm is not threatening to leave the state of Florida like they did the last time they didn’t get the rate increase they requested (that increase was turned down in its entirety).
The approval comes as state legislature is moving forward with a plan that would allow the state-run, Citizens Property Insurance Corp., to increase premiums by up to 25% a year. This is in an effort that may help Citizens return to it’s true roots of insurer of last resort.
Support for this measure comes from both the Republican majority Legislature and Florida Governor Rick Scott.
