Floridians potentially face home insurance increase of 14.9 percent - homeinsurance.com (blog)

Thursday, Aug 09,2012
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Florida residents insured by State Farm are potentially facing greatly increased homeowners insurance rates come the fall, according to the Palm Beach Post.

State Farm is proposing an average increase of 14.9 percent on all plans, with supplemental increases of 57.3 percent on apartment owners and 27 percent on condominium owners. The insurance provider is citing the high risk of hurricane damage to houses, despite the fact that Florida has not encountered serious hurricane damage since 2005.

However, in order to enforce these new rates, State Farm must justify them to the Florida Office of Insurance Regulation.  Currently, the board is skeptical about the need for the increase. 

"In addition to the general concerns of a nearly 58 percent rate increase, is the concern that State Farm has not given any indication that this rate increase will result in them writing any new policies," said Brian Deffenbaugh, senior counsel for the Office of Insurance Consumer Advocate, in an interview with the Post.

State Farm is the second-largest insurance provider in Florida, with 467,000 policyholders across the state.

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