Received latest bill for home owners insurance which is paid with my mortgage monthly. Increase for 2013 over 2012 was $423 over this years cost of $1145.

When I called the agent, they indicated it was because State Farm was raising rates for those who did not have a fire hydrant closer than 1000 ft. I went out and measured distance to fire hydrant and it was less than 500 ft. I called back agent and they are to advise of change of rate.

I see this as a tactic to see how many people won't pay attention to their bill change, especially if the insurance is paid by their mortgage escrow.

If enough people don't pay attention, this is a huge windfall to State Farm. If they were really interested in this issue, they could check in advance of changing pricing, not after a challenge is made.

Company wrote 0 public responses to the review from Dec 24, 2012.
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Milledgeville, Georgia, United States #586026

Yes, the largest property and casualty insurer in the world has conspired to secretly increase everyone's rates in the hopes to pocket the money. Seriously?

Forget about the fact insurance is the most highly regulated industry in the world. Let's also not even consider the fact independent data based programs determine your risk based on the information that is in the data base. Not only does the insurance company NOT determine the distance to your fire hydrant or your nearest responding fire department, they have no idea what that information would be unless the info had not have been entered into their data base by the state-wide Insurance Serivces Offices. The ISO is an independent department run by your state that determines distance to fire hydrants, dry hydrants and fire departments, both volunteer and fully staffed.

This is a non-profit based data service who determines your Fire Rating Classification. Those codes are reported to each and every insurance company in your state. Yes, mistakes can be made. That's where you come in.

If you notice a large increase, you call your insurer. Your insurer verifys the information with the ISO. If the ISO reports this information is correct, you are given a new code. Guess what else, even if you have a fire hydrant or dry hydrant by your front door, it won't help you if you're more than 5 miles from the nearest qualifying fire department.

You'll still get the increased rate. Your home must be BOTH within 1000 ft of a fire hydrant/dry hydrant AND within 5 miles of the primary responding fire department. Not just any fire department, the one that's classified as being YOUR primary responding fire department. That's how fire protection rates really work.

If your home doesn't meet all the criteria, you're considered an increased risk and your rates will reflect that....with ANY and EVERY insurance company.

to Insurance Basics #587535

State Farm does not use ISO data and hasn't since about 2003. However State Farm has apparantly decided that ISO's 1000 foot rule has some merit since they are now paying attention to it.

State Farm uses its own database now and it is by zip code if I remember right. If you have an area in a zip code that has tons of problems and you live in an area in that zip code 5 miles away and you have no problems you pay extra because you are in the same zip code.

Kind of an insurance socialism. You as a responsible community pay extra because of those less responsible communities problems.

to Insurance Basics San Antonio, Texas, United States #619923

ISO is certainly NOT run by the states. If you call them or even bother to read over the data on their website you will clearly see that they are a for-profit corporation that boldly states that their information is proprietary.

They are very secretive about how and why they issue the ratings they do when it comes to policy holders.

They hide behind being and "advisory organization" despite being fully aware of their influence. When they get things wrong, they blame the insurance companies.

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