MIAMI – June 7, 2019 – Hurricanes gave South Florida a break last year, and State Farm Florida listened. The company is dropping rates for its 270,000 Florida customers by an average of 14.4%.
It’s a rare bit of good news for Florida, where hurricanes frequently bring higher home insurance rates. For any homeowner with a mortgage, storm insurance is required by lenders.
The reason for the rate drop: lower costs for State Farm. “We had few losses compared to previous years, so our savings will benefit our clients because we have additional funds,” said Jose Soto, a public relations official with State Farm Florida.
The rate decrease took effect May 15 for clients buying new policies; existing policy holders will see the decrease beginning July 1. Total savings to policy holders will be $95.9 million in premiums over 2018. Individual savings will be determined according to the details of each policy. Because of billing cycles, some policyholders will not see the savings until their escrows are settled at the end of the year.
Source: © 2019 Miami Herald, Sarah Moreno. Distributed by Tribune Content Agency, LLC.
To date, no other Florida property insurance companies have decreased rates, according to the Florida Office of Insurance Regulation. Homeowners can compare rates on the state website’s comparison tool.