State Farm Co.’s homeowners rate hike rejected

Published 12:00 am Thursday, February 11, 2010

BATON ROUGE (AP) — State Farm Fire and Casualty Co.’s request for a major rate increase in homeowners coverage has been rejected.

Louisiana Insurance Commissioner Jim Donelon said Wednesday that the increase ‘‘was determined to be unreasonable.’’ State Farm had wanted an additional $67.6 million in annual premiums.

Although the average increase would have been 19.1 percent, rates in different areas of the state would have fallen as much as 5 percent to increases of as much as 44 percent — with residents in coastal areas taking the brunt.

Email newsletter signup

State Farm is Louisiana’s largest home insurer with about 27 percent of the market share.