State OKs remainder of insurance hike

Thursday, May 29, 2003 | 11:20 a.m.

CARSON CITY -- The State Farm Fire and Casualty Company is raising its homeowner and renter insurance rates again.

State Insurance Commissioner Alice Molasky-Arman said today she has approved a statewide average increase of 5.2 percent for the company to collect an additional $2.5 million a year.

State Farm insures more than 83,000 homes, 13,000 renters and about 8,000 condominium owners in Nevada, officials said.

In March, the company had received approval for a 17.9 percent rate increase after asking for a 24.9 percent hike. Molasky-Arman did not approve the full amount because the company had not submitted complete information. She said State Farm later supplied the additional data to justify the full rate increase.

The insurance division said the latest increase will be effective June 10. It amounts to average statewide increases of 5 percent for homeowners, 18.6 percent for condo owners and no change for renters.

Molasky-Arman said homeowners in Clark and Douglas counties and Carson City will see the largest increase, a jump of about 25 percent. Washoe County homeowners will see the smallest increase, 7 percent.

The division said rate changes for individual customers will vary, depending on a variety of factors such as the amount of coverage on the dwelling, deductible and discounts on the policy.

The minimum premium of $125 for a homeowner increases to $150 and the minimum premium of $75 increases to $100 for owners of condominiums.

When the 17.9 percent increase kicked in, rates rose by 19 percent for homeowners, 18.3 percent for condos and 0.1 percent for renters.