Well, we all know that President Obama can just give any future oncoming hurricaines a dirty look and they’ll simply disperse in fear.
Now you are jinxed.
“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.
So will that equate with a rate reduction? /sarc/
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.
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.
State Farm sees the handwriting on the wall.
They want to be in business 2-3 years... 2-3 months... down the line.
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.
But hurricane W hit the stock market, and that's where insurers make or lose money. They have to make up the money somehow.
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.
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
Obama’s fault!
Obama has neutralized Karl Rove's hurricane making weather machine for now.
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?
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.
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.
You're forgetting the one that hit the whole nation on November 4th.
someone explain to me why SF is the bad guy in this scenario??