No New Policies

By: KAKE News
By: KAKE News

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If you're in the market for a new home insurance policy, don't call State Farm.

The largest insurance company in Kansas and four other states won't take new customers. Current customers can renew their policies, but it might cost you more.

State Farm says it's losing money because of an increase in claims in five states, including Kansas.

State Farm says for every $1.00 premium it has, it's paying out $1.27 in claims. The company has grown so much, it can no longer handle the increase.

Company officials say one of the main reasons for this move is due to natural disasters like the Hoisington tornado.

In Kansas, State Farm represents 24 percent of homeowners. That's one out of every four homes.

Because of an increase in claims in Kansas, Arkansas, Missouri, Texas and Oklahoma, State Farm says it can no longer maintain it's market share and stay profitable unless it stops taking new policy holders.

This change only affects people who are looking to get a new homeowners, renters and mobile home policies. Current customers will continue to get the same service, and will be able to renew their policies, but it may be at a higher rate.

The state insurance commission office sees this as a good thing for the other 150 insurance companies in the state, because now they may be on a more level playing field with State Farm, and new policyholders with those companies could see lower rates.

State Farm is still taking new auto insurance policies. Company representatives say they will reevaluate the situation in another year, or when it looks as though they can handle the increase in claims.

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