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State Farm files Illinois rate increase for homeowners
The filing covers 1,483,264 policies and would add $190.3 million in written premium, starting with new business on Oct. 1 and renewals on Dec. 1.
State Farm Fire and Casualty Co. has filed with Illinois regulators for an Illinois homeowners rate increase of 7.9%, after its actuaries calculated rates needed to be 12.5% higher, according to Insurance Business.
The company said the change would apply to new business from Oct. 1 and renewals from Dec. 1, with the filing marked "Filed" on Oct. 5 in Illinois's use-and-file system, meaning it is not yet an approval.
The rate action would affect 1,483,264 policies and is expected to add $190.3 million in written premium, or about $128 a year per policy, consistent with State Farm's estimate that the average customer would pay about $10 more per month.
Insurance Business also noted that the insurer projected different movements by product, including an 8.5% increase for standard homeowners rates, a 5.8% increase for renters, and a 3% reduction for condominium unitowners, with expected catastrophe losses accounting for 55.2% of premium in State Farm's projections for standard homeowners policies.