State Farm Seeks 10% Homeowners Rate Hike in Texas

State Farm Insurance has filed notice seeking an average 10 percent increase in Texas homeowner rates.

But company officials say discounts will be boosted to hold the actual premium hike to 1.4 percent statewide.

The Dallas Morning News reports State Farm has also proposed a requiring customers to shift to a deductible of 1 percent of the home’s insured value. Current deductibles are often a flat rate, such as $500 or $1,000.

Company officials said that the new deductibles are in line with the increased cost of home repairs.

State Farm wants the changes to take effect Oct. 15 for new customers and Dec. 1 for existing policyholders.

A new Texas law requires the state insurance commissioner to complete a review of the request within 30 days.