AUSTIN (Dallas Morning News) – State Farm Insurance has filed for higher rates and a new system for
calculating deductibles for Texas homeowners.
Proposed insurance rates are an average of 10 percent higher than current rates. However, State Farm officials said that several
discounts will be boosted to hold the actual premium hike to 2 percent in the Dallas area and 1.4 percent statewide.
Meanwhile, the new system of deductibles would eliminate dollar limits. The deductible would be 1 percent of the home’s insured value or
an optional higher percentage ranging up to 5 percent.
For example, policyholders who now have a $500 or $1,000 deductible would be subject to a 1 percent deductible on property damage or losses. That means the
deductible would jump to $2,000 for a home insured for $200,000.
State Farm’s higher rates and deductibles would take effect Oct. 15 for new customers and Dec. 1 for existing policyholders. The company currently
insures about 1.2 million Texas homeowners.