State Farm seeks to increase Louisiana homeowners’ premiums 19.1%Posted: January 11, 2010
Looks like Louisiana homeowners could soon be socked with a massive increase in their homeowners’ insurance premiums:
More than 295,000 Louisiana homeowners could see their premiums jump if the state Department of Insurance grants State Farm Fire & Casualty Co.’s request to raise rates an average of 19.1 percent.
“This rate change need is based on our projections of future losses and expenses. The statewide average increase is 19.1 percent, but the homeowners average increase for the Baton Rouge area, including Livingston and Ascension parishes, is 6.6 percent,” State Farm spokeswoman Molly Quirk-Kirby said.
“Individual policyholder impacts will vary depending on deductibles, policy limits and other factors,” she said.
State Farm is Louisiana’s largest homeowners insurance company.
The filing would affect 295,783 policyholders, according to Insurance Department records.
The rate increase would generate $67.6 million, or an average of around $229 per policyholder.
State Farm would not disclose the number of policyholders it has in the Baton Rouge metro area because that information is propriety and confidential, Quirk-Kirby said.
Insurance Commissioner Jim Donelon said he could not comment on the prospects of State Farm’s request.
The filing is being reviewed by the department’s staff.
State Farm requested an average increase of 14 percent statewide last year.