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2 Homeowner Insurers Request Hikes

January 23, 2002|Liz Pulliam Weston

Homeowners' insurance premiums in California may continue to spiral higher after two major insurers requested rate increases this week.

State Farm Insurance Cos., California's largest insurer, requested a 6.9% rate boost, according to state Department of Insurance filings made public Tuesday. Regulators approved a 6.9% increase for the company last year.

The Automobile Club of Southern California applied for a 6.6% increase.

Requests for rate increases of less than 7% do not require a public hearing and typically are approved by the Department of Insurance.

All of the state's largest insurers have requested rate hikes in the last year, saying their claims costs have risen.

Farmers Insurance Group has asked for five rate hikes in the last two years. Four have been approved and the fifth is pending. Cumulatively, the requests would boost the insurer's average premium by 37%.

Allstate Corp. is waiting for review of its 22.3% requested hike.

Liz Pulliam Weston

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