The state Insurance Department is continuing its review of State Farm Fire and Casualty Co.’s request to raise homeowners’ rates an average of 8.5 percent statewide.
State Farm’s new rates would affect roughly 301,000 customers. The company covers about 30 percent of the state’s homes.
The new rates would generate $32.7 million.
State Farm filed the proposed rates in June. State Farm spokeswoman Molly Quirk said that the department had asked for additional information and that the information is now being reviewed.
State Farm’s filing contains a number of proposed changes, including an optional 4 percent hurricane deductible and splitting out the portion of the premium that covers hurricane exposure from the basic homeowners coverage. Most of State Farm’s policies now carry a 2 percent hurricane deductible.
The split premium is used by several other insurance companies.
State Farm says the split will allow the company to more accurately price both types of risk.
The split could result in higher rates for people whose homes face greater risk from hurricanes, but those increases would be offset by lower rates for people whose homes face less hurricane exposure.
In March, State Farm received permission to raise homeowner’s rates by 9.9 percent.
The company originally sought a 19.1 percent increase, but Insurance Commissioner Jim Donelon blocked that request, describing it as unreasonable.