I have a home in Denver, Colorado. With the recent flooding in other parts of the state my homeowners insurance has risen quite a bit (even though there is no possibility my property could be flooded). I spoke with the State Farm Agent and was told that my rates rose as a result of the large losses they incurred from the flooding in Colorado. Is it reasonable/legal for that to be a reason to raise my rates? I would assume that their policy holders in the flooded regions had flood insurance (with State Farm assuming risk) or they did not opt to have flood insurance with the property owner assuming the risk.

About The Expert

Amy Bach

Amy Bach has been a professional advocate for insurance policyholders since 1984 and an attorney since 1989. She co-founded United Policyholders in 1991 and serves as the organization's Executive Director and primary spokesperson; shaping and overseeing the Roadmap to Recovery™, Roadmap to Preparedness, and Advocacy and Action programs. She is a nationally recognized expert on insurance claim and legal matters; frequently interviewed in print and broadcast media, and the author of numerous publications including "The Disaster Recovery Handbook", "WISE UP: The Savvy Consumer's Guide to Buying Insurance" and consumer tips and guides in the UP Claim Help Library.  Recognized by Money Magazine as a Money Hero, Bach is in her eighth consecutive term as an official consumer representative to the National Association of Insurance Commissioners, and is a member of the Federal Advisory Committee on Insurance.