State Farm wants 8.5% increase in homeowners’ premiums

State Farm Fire & Casualty, Louisiana’s largest insurer of homes, is asking state insurance regulators for permission to boost premiums by an average 8.5%. In a filing released Monday by the state insurance department, State Farm says the requested hike for just over 301,000 policyholders would increase rates by $32.7 million annually. The insurer wants the higher rates to go into effect for new policies on Aug. 15 and be added to renewed policies on Oct. 1. In March, Insurance Commissioner Jim Donelon rejected a State Farm request for an average 14.3% increase, saying it was not justified. That increase would have raised homeowner rates by $55 million annually. This is the third straight year that State Farm sought higher rates in Louisiana. The company received a 9.9% increase last year after requesting 19.1%. In 2009, State Farm received an 8.3% increase after requesting 13.7%. State Farm spokeswoman Molly Quirk says the rate plan would affect homes, condominiums and renters’ coverage.