State Farm Florida requests 47 percent hike

Tallahassee, Florida – State Farm Florida is seeking a 47.1 percent rate increase in homeowners' insurance policies, saying it's losing money on them now. Margie Menzel reports.

The Illinois-based State Farm is the largest private homeowners' insurer in Florida, with roughly one million customers. Company spokesman Justin Glover says the rate increase is necessary to stabilize its Florida operation, which is paying out $1.20 for every dollar in premiums. Ed Domansky of the state Office of Insurance Regulation says State Farm's filing is being thoroughly reviewed and a public hearing on it will be held next month. One reason the company claims its revenues have dropped: the success of the My Safe Florida Home program, which has resulted in discounts for 260,000 homes.