Insurance Commissioner Mike Chaney announced a nearly 20 percent rate hike by State Farm for coastal residents:

Insurance Commissioner Mike Chaney approved the rate increase, rejecting State Farm’s request for a 45 percent rate hike along the Coast. New rates will apply only for current policyholders because State Farm is writing no new business in the three Coast counties.

Chaney said Monday that Allstate is requesting a 65 percent rate hike statewide. The Mississippi Insurance Department has asked for additional information from Allstate in reviewing the rate proposal. Chaney’s office did the same with State Farm before agreeing to the lower increase.

Chaney announced State Farm’s increase in a news release sent out Monday afternoon.

“To limit potential future increases and ensure rate stability in catastrophe-prone areas, the law allows insurers to charge consumers a reasonable rate,” Chaney said in the release. “I would have preferred that there be no rate increases at this time, but our role is to make sure the rates requested are not excessive and are justified and actuarially sound. I believe we have fulfilled that role.”

State Farm already had raised rates in the rest of Mississippi by 3.9 percent.

This is unconscionable. It is clear that State Farm is trying to push out the rest of the policy holders it has on the Gulf Coast, accept those wealthiest who can afford it the most. If anyone is taking notes, Chaney is enabling them.

It’s another sad day for Coastal residents who continue to get kicked in the teeth following Hurricane Katrina.