The Dallas Morning News is reporting that Farmers Insurance is planning to raise the rates on homeowners insurance and Texas by almost ten percent in 2012. The rate increase will affect about half of the company’s policy holders in the Lone Star State.
Specifically, about 350,000 homeowners who currently have either Texas Family or Next Generation Home Policies through Farmers will see higher rates, which are set to take effect on March 16th. The last rate hike on Farmers homeowners policies was an increase of 3.9 percent in March, 2011.
Speaking on behalf of the insurance company, vice president and executive director for Farmers in North Texas explained that the higher rates are required in order to offset the fact that claims in Texas tend to be more expensive.
The rate increase was filed with the state insurance department on October 7th.