Farmers Pulls Plan for Home Insurance Rate Hike

By  | 

AUSTIN (AP) - Farmers Insurance will revise its plan for an increase in homeowners rates because state regulators indicated they would turn down its initial proposal.

Farmers withdrew its proposed 6.6 percent statewide increase in homeowners rates Monday, canceling a premium increase set to take effect.

Texas Department of Insurance spokesman Ben Gonzales says the agency was prepared to reject the plan because of concerns about rate variations across the state and indications that Farmers' current rates are adequate.

Farmers spokeswoman Michelle Levy says the company still wants to adjust its rates and is working on a new plan.

The department is still reviewing a rate increase proposed by Allstate Insurance, which wants to raise the average cost of its homeowners policies by six-point-nine percent.