Texas' three largest home insurers are kicking off 2014 with steep increases in policyholder premiums.
The Dallas Morning News reports that Allstate, Farmers and State Farm plan to raise rates for most current and new customers by between an average of 6.5 percent to 14.9 percent.
More than 2 million homeowners will be affected.
State Farm is the state's largest insurer. Spokeswoman Patti Kelly told the newspaper Friday that the company had no choice, given that it is spending $1.11 for every dollar collected in premiums to cover the cost of business expenses and claims.
The companies have notified the Texas Department of Insurance that the increases will help offset projected losses. The insurance department will review the rate hikes and can reject any it deems excessive.
Texas Watch, a consumer group, said Texas had the third-highest rates of any state according to a survey by the National Association of Insurance Commissioners last month - trailing only Florida and Louisiana.