State Farm boosting home insurance rates starting next week
BY FRANCINE KNOWLES Business Reporter email@example.com November 9, 2012 11:32AM
Updated: November 9, 2012 2:22PM
In what’s become a yearly unwelcome ritual for home owners, State Farm Insurance Cos. is boosting home owners insurance rates an average 4.7 percent starting Nov. 15 on new policies and starting January 1 next year on renewals.
“We’ve seen an increase in the frequency of weather-related claims,” State Farm spokeswoman Missy Dundov said in explaining the premium hike by the state’s largest insurer. “Building costs and labor costs are going up as well.”
Another factor has been an increase in the cost of settling liability claims, Dundov added.
The Bloomington-based company could not provide a figure on the dollar impact for the average customer.
State Farm, which insures one in every three homes in Illinois, raised home owners rates an average of 6.7 percent last year. That followed average increases of 5.3 percent in 2010, 13 percent in 2009 and 2.6 percent in 2008.
To reduce costs, customers are encouraged to talk with their agents and consider raising deductibles and taking advantage of discounts for which they may be eligible.