Springfield, IL (KMOX) - Next month, existing State Farm customers in Illinois will be hit with a 27% rate hike on homeowners insurance policies.
The insurance company says it's driven by catastrophic losses related to extreme weather in the state.
Some state officials -- including the Governor -- are calling for legislative reforms to bring more oversight to insurance rate hikes.
Abe Scarr, State Director of the Illinois Public Interest Research Group says there's no way to know if the rate hike is justified. "And that's what we think is one of the biggest problems. Illinois is relatively unique in that it does not have regulatory authority to review homeowners insurance and car insurance rate hikes and we think that needs to change."
Insurance carriers have traditionally balked at greater oversight, saying it could force them out of the state.
Scarr argues that utilities go through a review process if they want to raise rates on consumers. He says mortgage lenders require homeowners insurance, so the state should have a role in regulating it.
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