Farmers Insurance

State Farm to raise homeowners insurance rates as much as 14 percent in Dallas area

(DALLAS NEWS) - State Farm Insurance filed notice with the state Wednesday that it will raise its homeowner policies as much as 14.4 percent in the Dallas area, becoming the third and largest insurer to hike rates in the past month.

State Farm officials blamed the boost on a slew of spring storms unleashing hail damage in North Texas, as well as the rising price of building materials. Statewide, the rate increase averages about 8.5 percent, with the new rates hitting existing customers when they renew policies after Oct. 1. New customers will pay the higher rates starting Sept. 1.

The spike in premium costs also follows the devastation wreaked by Hurricanes Dolly and Ike last year.

Mark Hanna of the Insurance Council of Texas, an industry group, said Ike in particular was devastating, causing $10 billion in insurance losses.

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