Home insurance may soon become more costly in Ohio. Three subsidiaries of Farmers — Farmers Insurance Exchange, Farmers Insurance of Columbus Inc., and Fire Insurance Exchange — submitted filings on June 18 to request home insurance rate revisions in the state.
In a revision memo filed by Farmers Insurance Exchange, the company requested an overall rate change of 22.4%.
Farmers cited claims losses as justification for the 22.4% rate increase in all three filing memos. The companies incurred losses of nearly $25.4 million during the 2023 fiscal year, approximately $3.3 million more than their losses of $22.1 million during the 2021 fiscal year.
Currently, the average annual cost of homeowners insurance in Ohio is $1,342, according to Insurify’s latest home insurance report. Insurify’s data analysts predict that this average will rise by 5% in 2024.
The requested rate revisions will affect premiums for several different Farmers homeowners insurance programs if approved, including the Farmers Smart Plan Home Program, the Next Generation Homeowners Program, the Farmers Smart Plan Renters Program, and the Smart Plan Condominium Program. These programs are offered by Farmers Insurance Exchange, Farmers Insurance of Columbus Inc., and Fire Insurance Exchange alongside other home insurance products.
If approved, Farmers’ request will result in an overall rate increase of 22.4% for these subsidiaries’ home insurance products in Ohio, affecting 115,700 policyholders in the state. Current and future policyholders with any of these homeowners insurance programs will face increased rates upon purchasing or renewing a policy.
The chart below shows the requested rate increase and estimated financial impact for policies under each affected program:
| Program | Rate Increase | Estimated Financial Impact | Combined Rate Increase |
|———|—————|—————————-|————————|
| Smart Plan Home Program | 13% | $4,194,000 | 6.7% |
| Next Generation Homeowners Program | 17.5% | $3,345,000 | 5.4% |
| Smart Plan Renters and Condominium Programs | 20% for renters; 30% for condominiums | $294,000 | 0.5% |
All three filings are awaiting further response from the Ohio Department of Insurance. The subsidiaries have been involved in ongoing communication with the department regarding objections to matters within each filing.
This objection and response process appears standard when compared to past interactions between Ohio insurance companies and the department. The Ohio Department of Insurance approved a similar rate increase request of 26.5% during June 2023 after initial objections.
The status for each current filing remains pending response from state authorities.
