Dallas-area home owners insured with State Farm insurance may soon pay more for their insurance due to recent rate filings according to information published on the Texas Department of Insurance’s website.
Customers of Texas’ largest home insurance company could experience rate increases of 35 percent or more for their home insurance policies when their policies renew this year. Shoppers that are looking for new home insurance, may see the results of State Farm’s new insurance rates even sooner. Based on TDI data, Dallas Home Insurance Zip codes may be among the hardest hit zip codes.
Kevin Davis, a spokesman for State Farm, said company officials will have to review the insurance department figures before making any comment.
“Of course, the best place for policyholders to continue to get information about any of our rate changes is with their State Farm agent,” he added.
State Farm cited that their increased rates were due to several factors including the increased cost of building materials, severe hailstorms in North Texas, and hurricanes in the coastal areas of South Texas.
Based on TDI’s new sample rates, homeowners around Dallas, Duncanville, Garland, Irving, Richardson, and Fort Worth could face increases as much as 39 percent.
The Texas Department of Insurance listed the new sample rates on their on Friday, May 29, 2010. State Farm and TDI have been engaged in a heated battle regarding proposed rate increases. State Insurance officials, including Commissioner Mike Geeslin, warn that a large rate increase from State Farm’s could disrupt the Texas home insurance market. If State Farm follows through with their new rates, it could force Texas home owners to shop their insurance. As a result, other insurance companies may follow State Farm’s lead and increase their rates as well.
Texas’ home insurance rates are already higher than all other states with the exception of Florida home owners.