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Farmers Insurance Plans To Increase Homeowner Premiums

Farmers Insurance Group plans to increase homeowner premiums in Texas by 10 percent next year because the high cost of claims the company has received over the last three years.

Texas homeowners insured by Farmers Insurance Group could see their premiums increase by almost 10 percent next year. The Houston Chronicle reports the insurance company says the cost of claims in Texas has risen over the last three years.

The state's third-largest insurer needs the increase because of rising claims costs, said John Henle, state executive director of southern Texas for the company. "Our losses over the past three years in Texas have been over $250 million, not including Hurricane Ike or the wildfires in Bastrop," he said.

The premium change would affect 350,000 people in Texas. The Texas Department of Insurance is reviewing the increase including another one by Farmers announced last month that would increase homeowner insurance rates and change deductibles.