AUSTIN (AP) - Farmers Insurance has indicated it wants to raise

home insurance rates 20 to 30 percent along the Texas coast, while

reducing rates in many other areas.

The company's rate filing with the Texas Department of Insurance

on Wednesday indicated a net result of a statewide increase of 2.2

percent with hefty premium hikes in coastal counties and southeast

Texas. Many other parts of the state would see modest reductions.

Michelle Levy, a spokeswoman for Farmers, said nearly 50 percent

of the company's 686,000 policyholders in Texas would see lower

premiums under the plan.

"We feel good about the proposal," Levy said. "We think these

rates are fair and justified and represent what we need to be

charging in the current Texas market."

The new rates, which will be reviewed by insurance department

actuaries, are scheduled to take effect Feb. 16 for new and

existing customers.

The new filing comes five months after the company withdrew a

proposed 6.6 percent increase in homeowner rates when the insurance

department signaled that it would reject the plan.

Ben Gonzales, a spokesman for TDI, said the department will

review the filing over the next two months and decide whether it is

appropriate before the effective date.

"We're still trying to work with the company," he said.

Levy said the proposal reflects concerns an increased number of

hurricanes and tropical storms will threaten the Texas coast over

the next few years. The industry saw massive property losses from

hurricanes Katrina and Rita in 2005.

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Information from The Dallas Morning News: www.dallasnews.com

(Copyright 2007 by The Associated Press. All Rights Reserved.)