Where can I find Farmers Insurance Rating formula for when they quote Homeowners Insurance rates?
Tuesday, January 10th, 2012 at
7:28 pm
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Filed under: Homeowners Insurance Quotes
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Those rates are all on file with the Texas Insurance Department, but you have to go there in person. The rates are a matter of public record – but the people there will NOT give you lessons on how to interpret or apply those rates. In other words, you’ll get the rate sheets – which could possibly be 100 or more pages (and you have to pay by the page) – but not the education in how to manually rate.
So, that’s where you find them. And I DO know how to manually rate a homeowners policy, but it’s NOT simple.
Here’s a clue – ask for only the rates for your territory code (you’ll need the territory code pages first) and your protection class (and you’ll need to know what your protection class is). Then you have to use basic algebra to interpolate the exact amount for your dwelling coverage. Then you apply multipliers for deductibles and endorsements. Then you apply the surcharges/credits.
Most likely, you only need five or six of the pages to calculate your exact rate – the trick is, knowing WHICH five or six pages. So you have to get them all.
They only have to disclose them to the insurance commissioners in their state, not you.
That is confidential information and the only people within any insurance company who know the exact formulas are the actuaries themselves. The underwriters nor the agents have that information.
No company is going to release trade secrets.
They do not disclose their methods.