State Farm Fire and Casualty Company has increased its statewide average rate increase by 1 percent for Ohio homeowners insurance policyholders, including renters and condominium unit owners.
The new rates were implemented June 15 for new customers and will take effect beginning Aug. 15 for current policyholders when they renew their policies. Homeowners rates are based on projected claim costs and follow recent trends in the number of claims and the cost of paying them. Rate changes for individual customers will vary, depending on a combination of several factors such as fire protection, construction of the home, location of the home and policy coverages.
In addition to the rate increase, State Farm estimates it will pay $7 million in claims from the storms that battered Ohio on Friday, July 14.
“At this time we’re expecting a total of 3,500 home, business and auto claims that could cost up to $7 million,” said State Farm’s Don Charlton, Ohio Regional Catastrophe Coordinator.
As of Sunday morning, State Farm had already received 750 claims from the storms. State Farm, the largest homeowner and auto insurer in Ohio, is adding additional personnel from across the country to help handle the claims.