The 4.5% increase will take effect this summer
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AMARILLO, TEXAS -- Insurance may be going up for many Texans; the state's largest home insurer, State Farm is looking to increase rates starting this summer.
Nearly 1.3 million Texas homeowners hold policies with State Farm who is planning a 4.5% increase on their rates.
The increase will take effect May 1st for new customers, and June 1st for existing customers renewing policies.
State Farm officials say the increase is due to rising costs involved with providing homeowners coverage, and that they must maintain the ability to help customers when claims are filed.
"Right now we're just focused on getting the word to our customers about the increase, letting them know our goal is to ensure that we're in a financial position that allows us to keep our promises to them when the time arises," said Kevin Davis, Sate Farm Spokesperson.
Davis added that if policy holders have questions to start locally with their personal agent.
"Basically, we want to encourage them to stay in touch with their agent, and explore all the options for discounts and coverage that are available to them to help manage their own policies and coverage," said Davis.
The rate increase may still face opposition from the Texas Department of Insurance, who has rejected and shown disapproval of past rate requests by State Farm. They have even ordered State Farm to reimburse policy holders for past rate increases that consumer advocacy groups found unfair and unreasonable.
For more information on this rate increase check out the links provided below including an informative article by the Star-Telegram.
