Insurance increase

An arbitration panel has approved a statewide average increase of 54 percent for homeowners rates that Nationwide Insurance requested last year — but for many policy holders it will likely be much less because of a new law.

The increase would take effect this summer or when policies are renewed. Legislation passed in a special session in January that aims to drop premiums will lower the increase.

The new law is expected to lower rates primarily by giving insurance companies more access to cheaper backup coverage through the state's Hurricane Catastrophe Fund.

A spokesman for Nationwide says the approved rate increase will help the insurance company build a surplus and prepare for future events. The company still has to work with the state's Office of Insurance Regulation to determine how it will comply with the new law.


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