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State Farm pulling out of Florida
Palm Beach Post ^ | Tuesday, January 27, 2009 | By RANDY DIAMOND

Posted on 01/27/2009 8:44:22 AM PST by Fawn

State Farm Florida is pulling out of the homeowner insurance business in Florida, the company said this morning, in a surprise move that will leave more than 800,000 policyholders without coverage and will cause almost certain turmoil in the Florida insurance marketplace.

"Faced with steeply declining resources to cover future claims and expenses, State Farm Florida has little choice," said Jim Thompson, president, of State Farm Florida. ''This is not an action we wanted to take, but one we must take given the realities of the Florida property insurance market.

"We regret the impact this will have on our customers, employees and agents in Florida," he added.

Thompson said the plan requires regulatory review, and State Farm Florida will not begin dropping policies under the plan until that process is complete. Florida, however, has no law on the books that would prevent State Farm from leaving the state's homeowner insurance market.

State Farm Florida emphasized that it was submitting a two-year plan that seeks to limit disruptions for customers, and if approved, will allow them time to find coverage with other insurers.

State Farm is Florida's largest private homeowner insurer, second only to state-sponsored Citizens Property Insurance Co.

State Farm is also Florida largest automobile insurer with more than 3 million policies. The company says it will continue to offer auto coverage. However, a 2007 state law pushed by Gov. Charlie Crist prevents insurers from offering only auto policies if they offer both auto and homeowners in other states.


TOPICS: Breaking News; Culture/Society; News/Current Events; US: Florida
KEYWORDS: crist; florida; goodriddance; hurricanes; insurance; socialism; statefarm
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It's been almost 4 years since we had a hurricane....
1 posted on 01/27/2009 8:44:22 AM PST by Fawn
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To: Fawn

Well, we all know that President Obama can just give any future oncoming hurricaines a dirty look and they’ll simply disperse in fear.


2 posted on 01/27/2009 8:46:35 AM PST by RandallFlagg (Satisfaction was my sin)
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To: Fawn
It's been almost 4 years since we had a hurricane....

Now you are jinxed.

3 posted on 01/27/2009 8:47:07 AM PST by Travis T. OJustice (Change is not a destination, just as hope is not a strategy.)
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To: Fawn

“However, a 2007 state law pushed by Gov. Charlie Crist prevents insurers from offering only auto policies if they offer both auto and homeowners in other states.”

A big part of any private business’s problems like insurers are the bureaucrats and politicians ... these are people too stupid to recognize economic realities and are just as likely to mandate a repeal of gravity if they think it will get them a vote.


4 posted on 01/27/2009 8:47:11 AM PST by mgc1122
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To: Fawn

So will that equate with a rate reduction? /sarc/


5 posted on 01/27/2009 8:48:16 AM PST by Steamburg ( Your wallet speaks the only language most politicians understand.)
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To: RandallFlagg

You don’t need private home owner’s insurance. The gubmint will take care of you...


6 posted on 01/27/2009 8:48:21 AM PST by Russ (Repeal the 17th amendment)
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To: Fawn

I wonder if a law preventing it’s citizens from buying car insurance from State Farm if State Farm isn’t selling home insurance would pass muster with the interstate commerce clause.

If I lived in Florida, I would be pretty upset if the government restricted my access to car insurance.

Of course, I’d also be upset that I was losing my homeowners insurance because of laws that make it too risky for the insurance company to operate in my state.


7 posted on 01/27/2009 8:48:34 AM PST by CharlesWayneCT
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To: Fawn

Sounds like a similar situation in my town last year. Started having a series of earthquakes, several a day, for a couple of months. The insurance companies tried to shut the door on earthquake riders on their homeowner’s policies. The state said “oh no you di-uhn’t!”. The insurers ended up making money—the earthquakes subsided as quickly as they came.


8 posted on 01/27/2009 8:49:00 AM PST by randog (Tap into America!)
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To: Fawn

State Farm sees the handwriting on the wall.

They want to be in business 2-3 years... 2-3 months... down the line.


9 posted on 01/27/2009 8:49:00 AM PST by Reagan Man ("In this present crisis, government is not the solution to our problem; government is the problem.")
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To: Fawn
State Farm is Florida's largest private homeowner insurer, second only to state-sponsored Citizens Property Insurance Co.

Be interesting to know more of the dynamics of this statement. The state sponsored insurance may have driven SF out of the market. Such is the life of socialists.

10 posted on 01/27/2009 8:52:20 AM PST by IamConservative (Will Work for Bailout)
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To: RandallFlagg

LOL, oh my eyes, I can just see it now.


11 posted on 01/27/2009 8:52:55 AM PST by Tarpon (America's first principles, freedom, liberty, market economy and self-reliance will never fail.)
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To: Fawn
It's been almost 4 years since we had a hurricane...

But hurricane W hit the stock market, and that's where insurers make or lose money. They have to make up the money somehow.

12 posted on 01/27/2009 8:53:54 AM PST by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: mgc1122
A big part of any private business’s problems like insurers are the bureaucrats and politicians ... these are people too stupid to recognize economic realities and are just as likely to mandate a repeal of gravity if they think it will get them a vote.

Isn't Senator Bill Nelson, as a former Insurance Commissioner, the culprit to our home insurance problems???

13 posted on 01/27/2009 8:55:25 AM PST by danamco (!!!)
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To: Fawn

How many SF agents will now be scrambling for there next gig. I feel sorry for the bloke who put 10-15 years in at SF, and now suddenly has to start all over again with AFLAC or Allstate or some other crappy company.


14 posted on 01/27/2009 8:55:41 AM PST by proudpapa (Obama - The Worst One Ever!)
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To: Fawn

State Farm has a history of using this tactic. I caught by that in Texas once.

Never again will I buy insurance from State Farm, regardless of how cheap they may offer it.

http://www.insure.com/articles/homeinsurance/state-farm-lowball.html


15 posted on 01/27/2009 8:58:23 AM PST by thackney (life is fragile, handle with prayer)
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To: Fawn
Crap. WE have State Farm. We're in Miami, FL.
16 posted on 01/27/2009 8:59:25 AM PST by ExSoldier (Democracy is 2 wolves and a lamb voting on dinner. Liberty is a well armed lamb contesting the vote.)
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To: Fawn

Obama’s fault!


17 posted on 01/27/2009 8:59:46 AM PST by Don Corleone (Leave the gun..take the cannoli now reads "Oil the gun..eat the cannolis.")
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To: Fawn
"It's been almost 4 years since we had a hurricane...."

Obama has neutralized Karl Rove's hurricane making weather machine for now.

18 posted on 01/27/2009 9:01:00 AM PST by lormand (Dissent is patriotic, only when the dissenter is a patriot, otherwise it is TREASON)
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To: Fawn

How is this a surprise? Florida regulations/constraints prevent State Farm from getting an adequate return given the risks. Who can blame them for leaving?


19 posted on 01/27/2009 9:02:21 AM PST by Drango (A liberal's compassion is limited only by the size of someone else's wallet.)
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To: Fawn

Very true...although Fay did a ton of damage over central Florida when she stalled out for over 3 days right off our coast...I think she reached Cat 1 status over Lake O and will be revised as such.


20 posted on 01/27/2009 9:04:30 AM PST by My Favorite Headache (Forget the 3AM phone call. Obama can not even answer the phone at 3PM.)
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To: ExSoldier

My sister does also — home and car. Crap is right. I guess it’s Citizens for all — and more surtaxes for everyone else to subsidize the increased “state burden.”


21 posted on 01/27/2009 9:04:34 AM PST by browardchad
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To: thackney

You should not buy insurance on anything from State Farm or from Allstate. They are the two best at collecting premiums and the two worst at paying losses.

A few years ago Central Indiana was pounded by a series of fierce hailstorms. Many, many roofs were damaged and had to be replaced. In my neighborhood of 45 homes, probably 60% got new roofs. State Farm and Allstate did not replace any roofs unless they were sued or threatened with suit by attorneys.

State Farm pulling out of Florida is actually a benefit to Floridians. Maybe they can take Allstate with them.


22 posted on 01/27/2009 9:05:37 AM PST by henkster (When I was young I was told anyone could be President. Now I believe it.)
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To: Drango

Could it be that many of these homes are insured for much more than they are now worth. SF could be protecting against a major payout when the next hurricane comes through.


23 posted on 01/27/2009 9:07:28 AM PST by streetsmart
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To: henkster
You should not buy insurance on anything from State Farm or from Allstate.

Agreed. When I bought my last house, I wouldn't consider getting a quote from either one of them. I would buy from a small unknown company before I would use either of them.

24 posted on 01/27/2009 9:08:22 AM PST by thackney (life is fragile, handle with prayer)
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To: RandallFlagg

This wasn’t supposed to happen with Obama as president.


25 posted on 01/27/2009 9:08:47 AM PST by Brett66 (Where government advances, and it advances relentlessly , freedom is imperiled -Janice Rogers Brown)
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To: Reagan Man
State Farm sees the handwriting on the wall.

Yep, they are seeing hundreds of billions of tax payer dollars being thrown around and want to get a piece. I expect other companies to follow suit. Create an insurance crisis and then demand that the government underwrite their policies. Sadly predictable.

26 posted on 01/27/2009 9:08:56 AM PST by usurper (Spelling or grammatical errors in this post can be attributed to the LA City School System)
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To: proudpapa

Sadly, SF agents are “captive”, meaning that they can not sell other lines, unless their company refuses to bid. This means that they have few “appointments” with other, outside insurers who are competitive and everyone knows they are biased toward their own company, instead of objectively searching the market.

For an agent, independence is a lot to give up for the SF “brand.”


27 posted on 01/27/2009 9:09:49 AM PST by Wiseghy ("You want to break this army? Then break your word to it.")
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To: Fawn

they will however be more than happy to continue taking your money for life/auto etc policys. i say if they want to continue to do business in the state of florida at all then they should have to continue to write all policys. they dropped our homeowners here in florida last year because we were deemed to be in a high risk area. the home we own was built in the 1940’s and has seen more hurricanes and suffered less damage during that time than the newer homes they continue to insure.


28 posted on 01/27/2009 9:11:09 AM PST by tatsinfla
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To: IamConservative

your wouldn’t think that if you new what the state sponsered citizens was getting away with charging........


29 posted on 01/27/2009 9:13:56 AM PST by tatsinfla
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To: Fawn
It's been almost 4 years since we had a hurricane....

You're forgetting the one that hit the whole nation on November 4th.

30 posted on 01/27/2009 9:16:09 AM PST by MahatmaGandu (Remember, remember, the twenty-sixth of November.)
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To: All

someone explain to me why SF is the bad guy in this scenario??


31 posted on 01/27/2009 9:18:02 AM PST by conservativebabe (awaiting inspiration for a new tagline)
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To: henkster
A few years ago Central Indiana was pounded by a series of fierce hailstorms. Many, many roofs were damaged and had to be replaced. In my neighborhood of 45 homes, probably 60% got new roofs. State Farm and Allstate did not replace any roofs unless they were sued or threatened with suit by attorneys.

Same here in Central Texas. After a bad hailstorm a few years ago, just about everyone on our street filed claims for roof damage. Our company (Travelers) paid out immediately. The only two neighbors who had trouble getting their claim approved were State Farm customers.

32 posted on 01/27/2009 9:21:32 AM PST by Constitutionalist Conservative (Two blogs for the price of none!)
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To: Fawn
State Farm is a mutual insurance company for what it is worth. I have State Farm and am content with it. I have high deductable and self insure as much as possible. I want low rates with a responsible payout. Sure the other companies pay out but you pay for it with increased fees. This article has an agenda, and most here are falling for it. State Farm is presented as the villain. But what about the state with all its rules and regulations and abuse by policy holders?
33 posted on 01/27/2009 9:23:36 AM PST by PeterPrinciple ( Seeking the truth here folks.)
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To: Fawn

34 posted on 01/27/2009 9:24:34 AM PST by Colonial Warrior (Never approach a bull from the front, a horse from the rear, or a fool from any direction.)
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To: Constitutionalist Conservative

We also had Travelers. Good company to deal with. Had an adjuster out in less than a week, had check in hand four days later. Enough not only for replacement roof, but also to upgrade to 30 year shingles.


35 posted on 01/27/2009 9:27:03 AM PST by henkster (When I was young I was told anyone could be President. Now I believe it.)
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To: conservativebabe

Reluctance to pay claims subsequent the hurricane season in 2004-5.

Rates doubled and tripled across the state, partially due to the artificial increase in property value due to temporary spikes in demand and unavailability.

Taxes doubled.

Non owner occupied and non primary residences became almost uninsurable.

And I left the state.


36 posted on 01/27/2009 9:28:58 AM PST by Eagle Eye (Libs- If you don't have to play the rules then neither do we...THINK ABOUT IT!)
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To: Fawn

Years ago they refused to write Automobile policies in California. It was right when I was trying to get insurance and they refused me. A year later they were cold calling and begging for my business. No way, if you can’t come through when I need you, I don’t ever need you.


37 posted on 01/27/2009 9:29:40 AM PST by w1andsodidwe (Jimmy Carter(the Godfather of Terror) allowed radical Islam to get a foothold in Iran.)
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To: mgc1122
A big part of any private business’s problems like insurers are the bureaucrats and politicians...

I am going to assume that you have no idea what the homeowners insurance situation was like in Florida the last 3 years or so.

Homeowners policies were either being shed by companies, the companies were going bankrupt right and left, or companies were not writing policies and doubling rates year after year. Things were very uncertain for a long time. When you could get insurance at all, the restrictions would leave you without coverage in many scenarios, and the riders required to get decent coverage meant double, triple, or even quadruple what you paid only last month. It was really scary.

Things are more stable now in the market, but it has been a bumpy, expensive ride. All of my insurance business was with State Farm. When State Farm dumped me, I dumped every policy that I had with them. I actually felt bad for the Agent, but I was not going to be played for a chump.

I urge anyone with State Farm insurance in Florida to dump them. After 20 years, they will never see another dime from me.

38 posted on 01/27/2009 9:31:34 AM PST by Mr. Quarterpanel (I am not an actor, but I play one on TV)
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To: danamco

Bill Nelson is an idiot as is RINO Mel Martinez and RINO Gov Charlie Crist.


39 posted on 01/27/2009 9:34:07 AM PST by Frantzie
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To: Travis T. OJustice
Now you are jinxed.

Fortunately for us, it doesn't seem to work like that.

Before Hurricane Anrew, it had been 25 years since a hurricane scored a direct hit on Miami Dade County. The trade off seems to be that when we DO get one after a lengthy period of time, it's going to be a biggie....

40 posted on 01/27/2009 9:34:27 AM PST by ExSoldier (Democracy is 2 wolves and a lamb voting on dinner. Liberty is a well armed lamb contesting the vote.)
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To: Fawn

Our condos have State Farm (great- it’s going to be a bitch to get someone else), but I switched my auto to Allstate. I got $5k more in coverage for $200 a year cheaper.


41 posted on 01/27/2009 9:36:41 AM PST by synbad600
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To: Fawn

Is this related to the problem with trial lawyers in Fla? I heard their medical malpractice situation is terrible.


42 posted on 01/27/2009 9:38:15 AM PST by tips up
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To: IamConservative
Be interesting to know more of the dynamics of this statement. The state sponsored insurance may have driven SF out of the market. Such is the life of socialists.

Government competition with private business is only one step away from government takeover of private business.

43 posted on 01/27/2009 9:42:21 AM PST by TChris (So many useful idiots...)
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To: Mr. Quarterpanel

“When you could get insurance at all, the restrictions would leave you without coverage in many scenarios, and the riders required to get decent coverage meant double, triple, or even quadruple what you paid only last month. It was really scary.”

Maybe the Florida insurance commission can mandate an end to hurricanes striking the Sunshine in order to stabilize prices for you ... or perhaps recognize insurance is a risk based industry that operates on a profit margin based on revenue being less than claim expenses.


44 posted on 01/27/2009 9:43:04 AM PST by mgc1122
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To: Wiseghy

Thanks, I know. I happen to be an independant agent representing several top companies.

Just recently I had a couple contact me who had applied for a LTC policy from SF. I was able to help them find a better plan with John Hancock that was less expensive.


45 posted on 01/27/2009 9:44:28 AM PST by proudpapa (Obama - The Worst One Ever!)
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To: Fawn

Funny how you can’t legislate that a company MUST do business in a state.* State Farm’s actuaries informed the company that it could not make a fair rate of return in Florida, thanks in part to laws like Crist’s. So it pulled up stakes. Obviously if it COULD have made money staying in FL, without undue risk, it WOULD have.

*- Actually, about 10 years ago, San Francisco passed an ordinance purporting to bar gas stations in part of the city from going out of business (from converting the physical property from “gas station” to “something else”). See how that works? “Oh, the gas stations are switching over to Starbuckses, or just going under, and now our voters complain that they have to drive further to buy gas. So, we’ll just outlaw this gas-stations-going-out-of-business stuff. Problem solved!”


46 posted on 01/27/2009 9:46:18 AM PST by pogo101
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To: Fawn
...Faced with steeply declining resources to cover future claims and expenses

In other words, they invested premium payments that lost 30-50% of their value. Expect more insurance companies to run into trouble.

47 posted on 01/27/2009 9:48:39 AM PST by Oldeconomybuyer (The democRATS are near the tipping point.)
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To: proudpapa

My inlaws have a $46,000 trailer on a lot in a 50 and over community in Clearwater, FL. Their homeowners insurance ended their policy and had to find another company.

The price for covering a $46,000 trailer? $3000 a year.


48 posted on 01/27/2009 9:51:18 AM PST by WaterBoard (Somewhere a Village is Missing it's Socialist.)
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To: Fawn
Good for the management at State Farm.

Now if we could get GM, Ford and Chrysler to stop selling new cars in California because they want to establish their own emission standards, we'd really be getting somewhere.

It would be very entertaining to see who blinked first.

49 posted on 01/27/2009 9:53:47 AM PST by Retired COB (Still mad about Campaign Finance Reform)
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To: Fawn

correct but at least the national monument gets 200 million face life, ACORN receives billions, Homo groups and special interests will get money and these banks who keep saying they are broke but buy planes or fancy get aways will receive even more money and the list is endless


50 posted on 01/27/2009 9:58:45 AM PST by manc (Marriage is between a man and a woman no sick MA,CT sham marriage end racism end affirmative action)
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