The Real Deal Miami

Hike could wipe out mitigation savings

August 12, 2008 12:19PM

Homeowners who received grants from State Farm to bolster their houses against storm damage would see those savings vanish if the company is allowed to boost rates by a statewide average of 47.1 percent. The insurer granted millions of dollars in credits, and was joined by others companies, such as Citizens Property Insurance, the state-run company that is the largest insurer in Florida. State Farm issued credits totaling $85 million in the first three months of the year, up from $60 million for all of 2007. State Farms says the rise in the cost of building materials is contributing to its weaker revenue projections through 2009, which necessitates a rate hike.