By Associated Press
Mobile, AL – Citing coastal growth and hurricane threats, State Farm will boost its homeowners insurance rates by 12 percent to 18 percent in Mobile and Baldwin counties.
The Alabama Department of Insurance approved the new rates Tuesday for the state's largest property insurer. Some 700 policies on the coast also will lose State Farm's wind coverage over two years.
State Farm also will require a hurricane deductible equal to 5 percent of the value of a policy for renewing Mobile and Baldwin customers. Those customers will pay a 1 percent deductible for other losses, including fires and thefts.
Elsewhere in Alabama, State Farm spokesman David Majors says rates will drop by an average of 0.9 percent.
(Copyright 2008 by The Associated Press. All Rights Reserved.)