State Farm homeowner's insurance policy holders to see rate hike

And all the storms we had likely played a role in this next story. Homeowners may soon be paying more for insurance. A rate hike is on the way for Illinois' largest homeowners insurance company. Rates going up an average of eight percent. NBC5 response investigator P.J. Rendau is here now to explain exactly who will pay more, but also P.J., when is this going to happen? Yeah, Stefan, yesterday we told you how State Farm is sending out dividend payments to its auto customers. Today, a very different story. State Farm tells NBC5 response it's increasing its homeowners insurance rates because of all the severe weather we've seen in our area. Now, the company says as the cost to repair all the damage increases, the company has decided to raise its homeowner insurance premiums so can find financially be prepared to pay out all of those claims. Now, according to State Farm, effective October 1st for new businesses and December 1st on renewals, non-tenant homeowners rates for Illinois customers are increasing an average of eight percent. Now, the rate applies to people who own and insure the residence rather than the tenants or renters who insure their personal property and liability but don't own the dwelling. Now, State Farm says it will send you a letter in the mail to let you know about the increase about two months in advance of the renewal. It also mentioned that Indiana homeowners have already had their rate increase this year so they're not impacted by this increase this time around. Back to you. Thank you for the warning, I guess.