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State Farm To Eliminate Security System Insurance Discounts in Texas

State Farm also filed paperwork to raise homeowner insurance rates in Texas by a statewide average of 20.8 percent.


StateFarm
According to an article in the Amarillo (Texas) Daily News, State Farm Insurance asked the Texas Department of Insurance to discontinue the 5 percent insurance-premium discount for security systems. The discount offering was changed from mandatory to voluntary back in 2003.

The State Farm request comes at the same time the company reportedly filed paperwork to raise homeowner insurance rates in Texas by a statewide average of 20.8 percent.

A State Farm spokesperson told the paper that it decided not to offer the home security discount because only 2 percent of its customers took advantage of the discount.

According to the State Farm Web site, mold claims in 2001 in Texas cost insurers more than $850 million compared to virtually nothing just a few years earlier. The number of mold claims in the state increased by 1,300 percent between the first quarter of 2000 and the fourth quarter of 2001 while insurer payouts through the third quarter of last year increased 1,200 percent.

According to the Insurance Information Institute, nationwide the average homeowner's premium rose from $418 in 1995 to $603 in 2003.

As cited in the Amarillo Daily News article, to qualify for the discount, homes needed the following:

Metal-clad doors or solid wood doors at least 1 and three-eighth inches thick. The door may be partial glass or mostly glass as long as the wooden frame is solid wood or metal clad. Hollow-core doors are not allowed on the exteriors of the house.

All exterior doors must have a dead bolt with a throw of at least an inch.

All windows must have secondary locks. Garage doors must have secondary locks; garage-door openers count.

Sliding glass doors must be secured by an additional lock. Pinning the door is recommended.

Windows must be secured by an additional lock. Storm windows qualify, but insulated pane windows do not. If the home does not have storm windows, the windows must be pinned or have an auxiliary lock.




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Article Topics

News · Security · All topics

About the Author

Jason Knott, Editor, CE Pro
Jason has covered low-voltage electronics as an editor since 1990. He joined EH Publishing in 2000, and before that served as publisher and editor of Security Sales, a leading magazine for the security industry. He served as chairman of the Security Industry Association’s Education Committee from 2000-2004 and sat on the board of that association from 1998-2002. He is also a former board member of the Alarm Industry Research and Educational Foundation. He is currently a member of the CEDIA Education Action Team for Electronic Systems Business. Jason graduated from the University of Southern California.

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