September 07, 2006
Rate Cut: Insurance Firms’ Gift To Homeowners?
Some really good news for Californians! State Farm, California’s largest homeowners insurance company recently proposed a rate cut that would save customers millions. Over 1million customers could save around $103 a year through this 11 percent rate cut if the state approves. The reason given for this generous cut is that the number of claims is down, so State Farm’s reserves are healthy.
Actually, there seems to be quite a bit of health going around after State Insurance Commissioner John Garamendi asked the industry to justify their homeowners’ premiums. Since June, when the insurance commissioner made the announcement, three insurance companies have applied for a rate cut. But this latest rate cut may not be good enough to satisfy the insurance commissioner. Abclocal.go.com reports:
His department found less than 40 percent of the money was paid out in claims over the last two years -- a period that saw small scale disasters or losses: no major earthquakes and no major firestorms.
Read more: Major Homeowners Insurance Rate Cut Proposed
--
Did you enjoy this post?
