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Florida to reject State Farm rate hike

by Biz Journal SF - Aug 26,2008

Florida’s top insurance regulator on Monday announced that the Office of Insurance Regulation has issued a notice of intent to reject the July 16 rate filing submitted by State Farm Florida.

The 2,000-page request asked for an overall increase of 47.1 percent for homeowner insurance policies.

Some residents could have seen increases as high as 63 percent, or $8,300 more than what they pay now, based on homes valued at $300,000 and built before 2001 without mitigation devices.

In Miami-Dade County, the requested rate hike was 70 percent, or $4,800 more per year. In Broward, the request is for 80 percent or $10,400. And in Palm Beach the rate hike request is 56 percent or $7,695 more.

"The Office thoroughly reviewed State Farm’s filing and the testimony the company gave at the Aug. 12 public hearing," said Deputy Commissioner Belinda Miller. "State Farm did not provide appropriate support for the rate increase it requested."

State Farm has 21 days to petition the office for an administrative hearing. But in the meantime, the company cannot hike its rates.

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© American City Business Journals Inc. All rights reserved.

 

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