Hike could wipe out mitigation savings

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.