TRENTON, N.J. — State Farm Insurance has notified policyholders in New Jersey of a potential overall rate increase of up to 147% for its Personal Liability Umbrella Program, according to a formal notice dated May 9.
The notification, required under New Jersey statute N.J.S.A. 52:27EE-51, follows two separate filings with the New Jersey Department of Banking and Insurance. The first, already approved, granted State Farm a 35% rate increase effective February 15 for new business and April 1 for policy renewals.
A second filing was submitted on May 2, requesting an additional 83.2% increase. If this second request is approved in full and added to the earlier hike, the combined effect would result in an average rate increase of approximately 147%, the notice states.
“The impact of these filings on your rates may vary substantially, depending on the terms of your policy and your individual circumstances,” the company stated in the letter.
Regulatory review pending on large premium increase
The requested increase is currently under review by the Department of Banking and Insurance and has not yet been approved. State Farm emphasized that the requested amount may be approved in part or denied altogether, and any change would only apply to policies upon renewal.
The letter does not specify how many policyholders may be affected by the rate hike, nor does it provide justification for the requested increases.
If approved, the sharp rate hike could significantly impact policyholders seeking umbrella liability coverage in New Jersey.
