The decision by the Office of Insurance Regulation will bring in $278 million in additional premiums for the company after all policies come up for renewals starting Dec. 1, agency officials say. However, State Farm can’t reduce the credits it offers homeowners for installing wind-mitigation features such as storm shutters, impact-resistant windows and doors, or reinforced garage doors to protect a home against violent weather. The company is also allowed to reduce discounts it now provides for upgraded plumbing, electrical, and air-conditioning and heating systems.
Last year, the company had complained that the mitigation credits — which were doubled in 2007 — were too steep and had drastically eroded its revenue in the past two years.
State Farm had requested an average 47.1 percent rate hike last year to make up some of the revenue it lost via the credits. The rate filing was rejected.
SOURCE – Miami Herald