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Farm Bureau raises homeowners rates

Farm Bureau raises homeowners rates

Farm Bureau raises homeowners rates
News from Charlotte Observer:

The N.C. Farm Bureau, one of the state’s largest insurers, is planning a further pullback from the residential property insurance market. The Raleigh-based insurer also intends to boost the premiums on more than 380,000 homeowners policies across the state by an average of 6 percent.

Both moves, approved by the insurer’s board of directors this month, stem from a steep increase in its reinsurance premiums in the wake of three storms last year that each triggered claims by policyholders in excess of $ 50 million. The company’s premiums for reinsurance – insurance that it obtains to protect itself from catastrophic losses – jumped from $ 75 million last year to $ 130 million.

Steve Carroll, executive vice president and general manager, said the company is reluctantly taking these steps in order to remain financially strong.

The Farm Bureau previously adopted underwriting guidelines that linked homeowners policies with auto policies, which are much more lucrative, across the state. It’s refusing to renew homeowners policies for policyholders who don’t have a Farm Bureau auto policy and who also have filed a claim on their homeowners policies within the past five years.

That move, which took effect in January, triggered complaints from consumers who argue it’s unfair. Allstate Insurance also has linked homeowners and auto policies.

Farm Bure…………… continues on Charlotte Observer

… Read the full article

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