Acadiana Business

State Farm raising rates 7.8%

by Leslie Turk

State Farm, which insures more homes in Louisiana than any other company, is raising its rates yet again.

The Associated Press reported this week that State Farm will raise its rates - yet again - on homeowners' and renters' policies by 7.8 percent.

In June State Farm asked the state Department of Insurance for an 8.5 percent increase which, if approved, could have raised homeowners', condominium and renters' insurance premiums to an average 26.7 percent higher than they were in 2008. It was the fourth time in three years that the company asked for an increase.

A State Farm spokeswoman told The Associated Press this week that the $32.2 million increase goes into effect with new policies on Feb. 15 and renewal policies on April 1.

The rates will rise depending upon where homeowners live, Quirk said. Although most coastal areas are in for increases, the largest jump will total 19.5 percent in northeastern Louisiana parishes around Monroe. Rapides Parish, including Alexandria, is in for a 13.9 percent hike.

State Farm has about 301,000 policyholders in Louisiana. The company was permitted a 9.9 percent average increase last year and an 8.3 percent increase in 2009 after requesting 13.7 percent.

Read the AP story here.