State Farm homeowner insurance rates in Illinois are going up 4.7 percent. (WJBC file photo)
By Stephanie Pawlowski
BLOOMINGTON - State Farm is boosting homeowner rates for Illinois customers 4.7 percent.
Spokeswoman Holly Anderson said new customers are already seeing the increase and renewals will see the increase after Jan. 1. She said there's been an increase over the past five years in weather related claims in the state.
"And unfortunately we expect that to increase," Anderson said. "So, along with those weather related claims, we've also seen an increase in the cost of labor and materials for homes."
State Farm has had homeowner increases of 6.7 percent last year, 5.3 percent in 2010, 13 percent in 2009 and 2.6 percent in 2008.
"Part of raising rates, unfortunately, is to make sure that we can keep the promises that we make to policy holders, and to be able to afford to pay those claims, we're always assessing," Anderson said.
To reduce costs, Anderson said customers are encouraged to call their agent to look into possible discounts. She said customers can also try to take a higher deductible to lower the premium.
State Farm insures one out of every three homes in Illinois.
Stephanie Pawlowski can be reached at Stephanie.Pawlowski@Cumulus.com.