California Insurance Commissioner Dave Jones announced on Oct. 19 that State Farm General Insurance Co. has agreed to reduce its Rental Dwelling Program policyholders' rates statewide by an average of 40 percent, effective Feb. 1, 2017.
According to Jones, rental property owners and small-business clients will see an estimated $101.1 million savings, with an average savings to individual policyholders of about $359 annually.
"This is good news for the approximately 200,000 State Farm rental dwelling policyholders, most of whom will receive a rate reduction as a result," said Jones. "Thanks to our review and conclusion that the rates as first proposed were excessive, we have obtained from State Farm a record reduction that will enable small businesses and other rental property owners to keep more of their hard-earned money."
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Rosalie Donlon
Rosalie Donlon is the editor in chief of ALM's insurance and tax publications, including NU Property & Casualty magazine and NU PropertyCasualty360.com. You can contact her at [email protected].
