Of the top 12 insurance companies in the CA, only five are still writing new policies.
State form will be soon Hike insurance rates Owners of Illinois’s house over 27%.
It is effectively adding $ 746 to the annual premium of the average policyholder. For comparison, the insurance cost of the average homeowner is around $ 2,110 per year, or is approximately $ 176 per month, according to the May 1 analysis of Nerdwelllet.
Illinois village. JB Pritzkar criticized the insurance giant’s move, saying that he is “deeply concerned with the increase in improper and arbitrary insurance rate of the state farm.”
“These changes will cost hundreds of additional dollars per year without state-based justification,” he said in a statement.
Increase in the upcoming rate, which begins on 15 August, is struggling with issues of strength in its housing market, making it difficult for people to buy a house.
There is already millions across the country Home insurance coveragePlated them at risk in disaster. In particular, according to the latest lending study in 11.3 million American owner-conscience homes, they are unaffected.
California approved the request to increase the insurance rate of double digits of state farm
Illinois village. JB Pritzkar criticized the insurance giant’s move, saying that he is “deeply concerned with the increase in improper and arbitrary insurance rate of the state farm.” (Getty / Getty Image)
But the State Farm stated that the company shows the risks in the state due to the increase in cost.
The company said that the cost of the home insurance claim is higher than the premium collected in the state, and last year, the amount of the total costs was $ 1.26, which was collected in the premium for each dollar.
“Such disadvantages are unstable,” said the insurance legend. Additionally, the cost of material and labor has increased, which is carrying forward the cost for repair or reconstruction of homes.
Chicago, Illinois’s aerial shot on a clear day from West Town. (Getty / Getty Image)
The company also blamed the increase in the number of harmful storms, stating that it pays more in the claims of hail damage in Illinois than in any other state except Texas.
“The main promise of house owners insurance, that your insurer claims you according to your policy, only works when policy rates correspond to the underlying risk. Accurately, risk-based pricing ensures that insurers such as state farms can pay claims during some of the most difficult moments of life for policyholders,” the company said.
State Farm Executive firing on premium hike after California Wildfire
The company also blamed the increase in the number of harmful storms. (Getty / Getty Image)
Redfin Chief Economist Derryl Fareweather told Fox Business that although Illinois is not available Hurricane or wildfierThere are still climate risk in homes in the state.
Fairweather said, “Serious storms that bring hail and high winds are becoming a problem for both the owners and insurers of the house, as well as other disasters such as flash floods and derechos.”
He agreed with the company, given that the increasing cost of home repair after disasters due to inflation has also increased. At that top, according to the Immigration Crackdown Fairweather, it is making it more expensive to hiring workers and to pursue insurance costs.
