State Farm to hike insurance rates

By WEEK Producer

March 7, 2014 Updated Mar 7, 2014 at 9:54 PM CDT

BLOOMINGTON, Ill -- All this bad weather we have been having lately is going to hit you some more in your pocket book. About a third of Illinois homeowners are going to see an increase in their home insurance costs for 2014.

That third of Illinois residents are the ones with State Farm home insurance. A State Farm spokeswoman tells News 25 that the reason for the nearly five percent hike in insurance rates is two-fold.

One reason is an increase in the costs of building materials and labor. A second reason is an increase in weather-related losses in Illinois over the past several years.

The company also raised homeowner rates in 2012 and 2013.

State Farm says there are ways to reduce insurance rates, including taking a higher deductible. The rate increases will be phased in as policies are up for renewal through the year.

To submit a comment on this article, your email address is required. We respect your privacy and your email will not be visible to others nor will it be added to any email lists.