Homeowners insurance premiums are decreasing

State Farm Fire and Casualty Company's overall homeowners insurance premiums in Nevada are decreasing; the effect on customers will vary.

An overall reduction of 2.6 percent was effective Dec. 1 for new policies. the rate change will be effective Jan. 15 for existing customers when they renew their policies.

Individual policyholders may see rate reductions or increases depending on a combination of factors such as location within the state, type of policy, deductible and value of the home. Homeowners rates are based on projected claim experience for fire, theft, wind, hail, liability and other perils. Previous claim experience is used to project future costs.

State Farm is eliminating one of the rating factors used to calculate the cost of homeowners and other types of property insurance. Public protection class is a factor assigned by an independent organization to assess an areas fire protection. State Farm is introducing a new subzone rating factor that relies on the company's own local experience for all types of insured losses, including fire. The last homeowners rate change was a 1.7 percent increase in March 2000.