BLOOMINGTON — State Farm Insurance will raise renewal rates for Illinois home and condominium owners in February.
The Bloomington-based insurance company will implement a 3.9 percent average increase for homeowners and a 6.2 percent average rate hike for condominium owners, effective Feb. 1.
“State Farm’s highest priority is to keep our promises to our policyholders and be there when they need us most,” said spokeswoman Missy Dundov. “To keep this commitment, we must maintain our financial strength by appropriately matching our rates to the amount of risk we’re insuring.”
It is the largest State Farm property owner increase since 2013, when rates increased by an average of 4.9 percent, according to the Illinois Department of Insurance.
“State Farm reviews loss trends over a period of years when determining homeowners' rates,” Dundov said. “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.”
Premiums for individual customers depend on a variety of factors, including location, type of home construction, age of utilities, and optional coverage the customer may have added to the policy, she added. Other factors, such as the level of coverage selected by the customer, various deductible plans, and associated discounts also influence a customer’s premium.
A 4 percent increase on new policies for homeowners and condominium owners went into effect Dec. 1.
State Farm insures nearly 33 percent of the homes and condominiums in Illinois, according to the Illinois Department of Insurance.