BALTIMORE -- Everyone has been watching gas prices skyrocket, but have you noticed how your homeowners insurance keeps going up? In Baltimore, one area resident said her insurance jumped 58 percent. What's causing the increases and what can you do about them? In the northeast Baltimore home she's owned for 17 years, Ellen Harrison looked over her homeowner's insurance.

"This is my policy ending October 2002 for $442; policy ending October 2003 for $499; policy ending October 2004 for $620," Harrison said.

And she's never filed a claim.

Her insurance company is the Erie Insurance group. A letter to another homeowner from an Erie Insurance agent states "the current market is challenging" and the company has "experienced a significant increase in claims severity" in Maryland which has forced it to raise rates by "an average of 40 percent."

"I'm not happy with it because it's getting more and more expensive to live in this house," said Harrison.

And rates continue to climb across the country. The Insurance Information Institute says it's because of catastrophes like the California wildfires, tornadoes and other natural disasters, such as Hurricane Isabel. The estimated payout: $17 billion in claims between 2000 and 2003.

Bob Hunter is a former Texas insurance commissioner and former national flood insurance administrator. Now, he's a watchdog for the Consumer Federation of America. He believes insurance companies aren't telling policyholders everything.

"Mostly what's happening is there's been a huge drop in investment income for the insurance companies from their investments," said Hunter.

Hunter also claims that several years ago State Farm, one of the largest carriers of home insurance, aggressively sold policies at very low rates, but suffered losses.

"And (State Farm) went from an aggressive seller to an aggressive price hiker," he said.

According to Hunter, that forced other insurers to raise their rates.

"What happens in these so-called hard markets is insurance companies get very nervous and everything that looks wrong they blow out of proportion," Hunter said.

A spokeswoman for State Farm would not comment directly on Hunter's allegations, but said:

"State Farm sets rates based on claim experience. (The company's) focus is on consistent growth with adequate rates, quality underwriting and managing operating expenses while making sure we pay what we owe."

Al Redmer is Maryland's insurance commissioner. In 2001, the agency received 148 rate changes from insurance companies. The number rose to 196 in 2002 and 2003.

The agency said those totals numbers also include rate reductions, but could not say how many.

" We take that responsibility very seriously," Redmer said. "We are very aggressive in making sure the companies do comply with Maryland law."

But under Maryland law, rate increases are effective as soon as they are filed. Redmer can request hearings if his agency thinks premiums are excessive. He says his office recently questioned a request from State Farm.

"it just wasn't justified in the opinion of the actuaries," said Redmer. "They didn't need to get the amount they were getting for these policies."

State Farm withdrew the increase. Still, Redmer said Maryland rates are going up.

Harrison is bracing for that. Her insurance company tells her it will happen this fall.

It seems there are only a few things you can do to handle rising insurance rates. Maryland's insurance commissioner says you can raise your deductible, shop around to compare insurance coverage and prices and ask about any possible discounts.