Florida homeowners with State Farm insurance will see an average 20 percent increase in their home insurance premiums this summer, while renters and condo owners will see rate cuts.
The Florida Office of Insurance Regulation approved the new rates April 8. All of the approved rates are lower than what State Farm originally requested.
"The amended rate filings by State Farm accepted by the Office today are reflective of both a rate need by the company as well as cost-drivers in the system," Florida Insurance Commissioner Kevin McCarty said in a statement.
In a December rate filing, State Farm asked for a 28.4 percent increase for home insurance; a 5.8 percent increase for renters insurance and a 19.3 percent increase for condo insurance. Besides the 20 percent hike for home insurance, the newly approved rates include a 15 percent decrease for renters and a 3 percent decrease for condo owners, according to documents filed with the Office of Insurance Regulation.
"We are amending this filing based on our understanding of what the Office is willing to approve," State Farm said in a letter to Florida insurance regulators. "We maintain that our original requested rate increase was fully supported."
The company plans to non-renew all policies and offer policies that cover catastrophic ground collapse, but not sinkholes. Customers can choose sinkhole coverage as an option, and the company will evaluate risk and price the coverage accordingly. The new rates will take effect June 1 for new customers and July 15 for current policy holders.
Meanwhile the office also approved a 62.1 percent increase for State Farm commercial residential policies for owners who rent out properties. Initially State Farm requested a 95.7 percent hike, impacting 40,137 policies.