Statement of Senator Rodney Ellis on State Farm Proposed Rate Increase
(Houston, Texas)—Senator Rodney Ellis (D-Houston) released a statement today regarding the announcement by State Farm that it intends to raise rates on Texas consumers by 20 percent.
"I have serious concerns with State Farms' 20 percent hike to its homeowners insurance rates. Texas families already pay the highest homeowners rates in the nation, and with State Farm insuring one in six Texas houses, a hike of that magnitude will only further squeeze Texans' already-tight budgets.
"To make matters worse, State Farm announced the hike on the same day it was reported that Travis County has begun a criminal investigation into how the company handled thousands of claims of damage resulting from Hurricane Ike. Perhaps they were hoping to dump all their bad news on one day.
"I will continue to fight for sensible changes to our state's insurance rate approval process in order to better protect Texas families. This includes prior approval, which would require rate changes from insurance companies to be approved by the insurance commissioner prior to implementation. It's long past time for our state's regulators to be given the tools they need - and to use the ones they already have - to help make homeowners insurance more affordable in Texas."