Here with another hurricane season update! For those homeowners with a State Farm policy – it’s your lucky day! The company announced on Friday that they will be dropping their rates for 270,000 Florida customers by an average of 14.4%.

This is definitely good news for Floridians, in a state where hurricanes often inflate the rates.

The reason for the rate drop is simply there have been lower costs for State Farm. Jose Soto, a public relations official with State Farm Florida stated, “we had few losses compared to previous years, so our savings will benefit our clients because we have additional funds.”

The savings for new policies took effect May 15^th, existing policy holders’ discount will begin July 1^st. Savings should be ~$95.9 million in premiums in comparison to 2018. Due to billing cycles, those homeowners with a mortgage might not see their savings until escrows are settled at the end of the year.

A senior vice president at State Farm, Dan Krause, said the reduced costs were the result of “the stable tendency of non-catastrophic losses, improvements in costs and losses and the financial strength of State Farm.”

State Farm Florida was established after Hurricane Andrew in 1992 as a subsidiary of the national State Farm company. Because the Florida company is a mutual company owned by its insured clients, the decrease in losses is passed on to clients.

The company will be sending letters to its clients discussing the rate cuts.

Want to compare your current rate? Check out the Florida Office of Insurance Regulation’s comparison tool! Click on the icon below!

Remember the cost of homeowners insurance in Florida can vary significantly based on several factors in addition to geographic location:

• Type of construction
• Dwelling value
• Mitigation features
• Amount of deductibles