As part of the filing, State Farm says it is eliminating flat deductibles in favor of a minimum of a 1 percent deductible.

This means a home previously insured for $200,000 with a $1,000 flat deductible now has a $2,000 deductible. The only exception is for homes insured for less than $100,000, because the $1,000 minimum deductible would not be met. The median home price in Texas is $145,000.

Davis says the insurer has also filed to improve discounts for newer homes and multi-line policyholders. The multi-line discounts increase to 25 percent from 20 percent, which affects 85 percent of customers, Davis says.

Because of the increases to discounts and other factors, Davis says 43 percent of customers will see no change or decreases to their policies.

Davis adds that 97 percent of new customers already take a 1 percent deductible.

The new rates and deductibles take effect Oct. 15 for new policies and Dec. 1 for renewals. The insurer's last rate change was a 4.5 percent increase in May 2010.

State Farm Lloyds has seen an explosion in claim volume and costs, says Davis. Currently the company is handling claims from a new outbreak of fires, which could cause $250 million in insured losses for the industry. Since Labor Day, Davis says State Farm Lloyds has received more than 800 claims.

Since January, State Farm has paid $410 million in homeowner claims and $115.5 million in auto claims to Texas customers. The totals represent more than a 200 percent increase in homeowners' claims paid and more than a 900 percent increase in auto claims paid compared to last year.

According to Highline Data, a unit of Summit Business Media, State Farm is the largest provider of personal-lines insurance (home and auto) in Texas, with a 22 percent market share. Zurich Insurance Group (Farmers Insurance) is next with 12.4 percent of the market.