By Howard Packowitz
BLOOMINGTON – Homeowners and condominium owners in Illinois will pay more to insure their property with Bloomington-based State Farm Insurance.
The company confirms homeowners will see an average 3.9 percent rate increase and condo owners will see an average 6.2 percent rate hike.
State Farm Spokeswoman Missy Dundov says the company is passing on higher costs to its policyholders based on predictive models assessing future risk.
“State Farm reviews loss trends over a period of years when determining homeowners rates. Our rates are based on the anticipated need to pay future claims informed by actual claims experience in an area – from weather, hail, wind, water, fire, accidents, liability, theft, and so on,” the company said in a statement.
Premiums for individual customers are determined, in part, by location, type of home construction, and age of utilities, State Farm said in a statement.
Policyholders have seen much smaller rate increases in recent years. Last December, rates rose 0.2 percent.
The latest rate hike took effect December 1 for new customers. Higher rates for existing customers take effect February 1.
Howard Packowitz can be reached at [email protected]
