A panel of two administrative law judges in Austin decided on August 19 that State Farm Lloyd’s did not excessively or unreasonably hike homeowners’ insurance rates following a series of severe storms across Texas.
According to the Dallas News and the Insurance Journal, the 1.2 million Texas homeowners affected by the insurance rate hike will continue to pay about 20 percent more than they did last year on home insurance. State Farm will collect an estimated $317 million more in insurance premiums each year, with the average annual State Farm premium in Texas set at $1,579.
The Office of Public Insurance Counsel argued in court that the homeowners’ insurance rates should be rolled back because State Farm was profiting well from their business and saw a drop in insurance claims in 2012 across the state. State Farm’s lawyers argued that the significant hike was perfectly reasonable based on the severe weather trends in Texas in recent years, from tornados to high winds to hail storms. They continued by stating the raise in rates was necessary to allow them to continue to offer services to customers and pay out on claims.
Texas Insurance Commissioner Julia Rathgeber will now either accept the ruling of the two judges or consider more arguments from both sides.
Are you a Texas homeowner who believes your insurance company is acting in bad faith? You may wish to speak with a Dallas home insurance attorney. Call the Voss Law Firm today to get your questions answered: 888-614-7730.