October 11, 2011
By: Jana Bell
Alabama homeowners insurance rates may be on the rise for many of the state's residents.
According to A.M. Best, policyholders who receive insurance coverage through State Farm will see their insurance rates increase for the second time in the past three years, jumping 5 percent for residents who live inland. Meanwhile, rates for homeowners who live along the Gulf Coast will remain unchanged.
Roszell Gadson, a spokesman for the state's largest insurer, said the rate hikes are taking place because the company anticipates increased operating costs in the immediate future. Counties such as Mobile and Baldwin were largely unaffected because "there are bigger rate needs elsewhere in the state," he said.
A.M. Best reports that since 2007, insurance rates among property owners in Alabama covered by State Farm have jumped by an average of 35 percent.
The hikes are expected to take effect in January 2012 for existing customers, the source reports. However, the higher rates will be put in place next month for new policyholders.
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