Skip to comments.State Farm pulling out of Florida
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.
Not surprising. After all, Obama has criticzed the last administration for the management of Katrina. He says (on the White House website) that they will rebuild NOLA, where Bush didn’t. State Farm may as well leave it to the Feds.
great to hear that at least there is an insurance agency poiut there who will pay up when the need arises
great to hear that at least there is an insurance agency out there who will pay up when the need arises
I have a house in north east florida, St Augustine to be exact and my insurance for my house and property is just over a grand
I have a house in north east florida, St Augustine to be exact and my insurance for my house and property is just over a grand
Wow...I have homeowner’s w/State Farm (we’re in the same area.) We’re not far from the water, but in a no-evac zone. We’ve had our insurance with them for 20 years...never filed a claim. We’ve seen steep increases over the past few years, but stayed with them because when I investigated the other policies, State Farm’s was more comprehensive. Stil for our home, which has replacement coverage of over a couple hundred thousand, we pay $3600/per year so the $3000 they pay for the mobile home seems so high.
If State Farm drops us, maybe we’ll just take liability. If you don’t have a mortgage you don’t have to have insurance, and I know quite a few people who “self insure” these days. The thing about having the insurance, if a hurricane comes through, you still pay the huge hurricane deductible before you can collect any money from insurance, so self-insurance is probably just as good a deal.
This can't be true, the global warming gore-bots decreed that global warming will cause more hurricanes and they will also be stronger and more damaging.
How dare you deny science and claim that you haven't had a hurricane in 4 years when Al Gore and his religion know better! /S
Good to know - that's who I've got.
Where's the pie...somebody ate the pie.
That is impossible because Global Warmin...I mean Climate Change models predict more and bigger hurricanes for Florida.
Did you see this? Industry ping!
You are like the guy that sits in the barber shop and complains about how he was treated on a claim with his insurance company and the company isn't there to give the details you chose not to tell.
For every bad thing you say about another company, I can match it with an insured that came to me with the problem they had with State Farm, they were one of the worst when I was in the business.
Years ago they (State Farm) stopped writing Homeowner policies in Florida and they soon found out they didn't write much of anything until they started writing Homeowners again. People (insureds) don't take well when their company doesn't do it all.
I know....doesn’t make sense.....AlGore is so smart and knows everything.....I just don’t get it.
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.
You carefully ignore the over 50% to 90% increase requests EACH YEAR since 2005. Then, of course, the shenanigans in the SE after Mobile got clobbered by Katrina. Try to get a payoff there, if it could be construed to be water damage. State Farm screwed people for YEARS.
My little condo in West Kendall, Miami tripled twice when State Farm dumped us and we had to take the state version.
State Farm IS a mutual company ... so tell me, if you live in Montana, did YOUR homeowner's insurance rates triple in the last three years? How about Californians. Oklahomans? Washingtonians? (the State, not D.C.)
The idea was to spread the risk, not limit it to a state or group of states and then screw them when possible.
Bluntly, that's what State Farm homeowners has been doing across the board. Now, how's your fire insurance in Southern California been doing, lately?
Buy a house in a filled-in vermin-infested swamp frequented by hurricanes and floods and someone should insure you against loss?
I had auto and homeowner’s insurance from Allstate for 30 years. I never filed a homeowner’s claim, but I had several auto claims over the years, including one for a car that was totaled. Allstate paid promptly in all cases and even successfully defended me in a bogus lawsuit filed in connection with one of the accidents.
Having said that, I am with USAA now, thanks to mrs riverdawg. I gave Allstate a chance to match USAA’s policy and premium and they declined even to try, saying it was their experience that they couldn't compete with them.
There’s really no reason not to use USAA for just about everything if you can.
That’s just great!
sound like a smart move on the face to me, but they are opening up a lot of customers for their competition.
Aaaw poor State Farm! Come back!!!
Good Riddance to that awful company
It will. The Insurance Commissioner is charged with making sure that all insurance companies must comply with state laws and the companies must submit to the authority of the Insurance Commissioner and if a company does not agree to the regulatory rules, then they will not be certified to sell insurance. It is not that the people can't buy it, it is that Insurance Company will be prohibited from selling it.
If I lived in Florida, I would be pretty upset if the government restricted my access to car insurance.
Gee, that's why we have elections.
Of course, Id 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.
That is why we have elections.
We lost our homeowners ins. in Florida at the end of 2006. It was with MetLife and they were dumping all of their homeowners policies in the area. We had this policy since 1985 and never made a claim.
We tried to get other private insurance, but private homeowner’s policies were not available. Citizens (the state run policy) was much more expensive than we were paying privately, and most people did not want the government alternative. There wasn’t any choice.
In retrospect, I am glad that the state stepped in and issued policies. I don’t think it was a question of SF being driven out of the market. I think private insurance wanted out of the market, and the state had to step in to prevent an economic disaster.
I don’t really think there is much competition for homeowners insurance in the coastal zones. Most of us are being non-renewed and shuffled off to state issued insurance regardless of whether we’ve had a claim or not. State Farm chose not to renew my homeowners last year after being a policy holder for over 25 years.
A guy down the street from me in Phoenix owned his home free and clear. Unfortunately he was a bit of a “hoarder” and when his house caught fire, there was so much stuff inside the firemen could not get in and fight the fire. He was also self-insured. Today there is only grass growing on the lot inside a chain link fence. Poor Marv.
My mobile is worth about $45K and it’s in the California foothills (earthquake country). My insurance is about $250 a year. Shhh don’t tell my agent it’s a bargain!
After hurricane Andrew hit South of Miami,
the Palm Beach Post had a cartoon on their editorial page.
“you’re in good hands” with two hands flipping off Florida.
Only good thing I ever saw come from the very liberal very badly written very biased Post.
State Farm replaced my roof in GA with hail damage this summer. they paid the entire cost since I had replacement coverage. not a single problem.
I have had State Farm for twenty four years and never had anything but first-class service when I needed it...
Insurance by law, McCarron-Ferguson, is not interstate commerce and is therefore regulated at the state level. Florida is the sole authority on what can and cannot be done by a regulated insurer in Florida.
Besides, your state government restricts your access to insurance all the time by acting to set the price a company can charge. Insurers are forced to tighten underwriting criteria or exit the state altogether as State Farm has done. Government interference, vis a vie over-regulation, is never a good thing.
State Farm isn’t going to leave FL. This is just the set-up to demand a part of the bailout if a destructive storm hits the state in the next few seasons.
Advise your inlaws to move...the insurance company actuaries are betting on a 1 in 15 chance that their trailer will be obliterated this year. Not very good odds.
Are you saying that people in Montana should pay higher rates because people in coastal areas are building expensive homes that will need to be replaced at some future date in many cases?
People that live in high-risk areas should pay the costs of that decision. Not everyone.
Suppose the state gave incentive to insurance companies to move in? Then, we might have more than just the handful of competitors currently in Florida.
One less competitor in Florida means HIGHER rates for everyone in the state.
I’ve had good luck with American Family Insurance.
I’ve never had problems with them either.
near same scenario. About 12 years ago we had a hail storm. SF called US because they had many reports of hail damage in our area. They sent an adjuster out and replaced our roof.
We were lucky too because we were about to put the house on the market.
Free Markets 101...
State Farm should be able to decide where they want to do business and how much to charge,
Homeowners can decide who they want to insure them and if they get a better deal then they should choose that person...
If no one wants to offer you the insurance that you want at the price you want to pay, then you are probably unrealistic in your expectations.
If you are not unrealistic, then some competitor will come in to offer you the insurance at the price you want.
If the above doesn’t appear to work right, check and see if the government is involved in the market and if they are, that explains the mix-up...
Now you know another.
I used the money saved with no insurance premiums to upgrade the structure and to install automatic fire suppression systems and alarms.
The property is even worth more with those improvements.
Port St. Lucie, Florida.
Allstate stopped writting new policies in certain areas a year or so ago.
I live on Long Island, and because it was hit hard in ‘38 by a huge hurricane, it would wipe out their company if a similar one were to rip across a crowed part of the island.
I still am insured by them because they arent cancelling old policies.
I suppose every part of the country is at risk, be it by hurricanes, tornadoes, earth quakes, mud slides, santa anna fires..etc, etc. of course floods are not included in most policies.
I dont know where it will end except with the end of the companies....they are in the insurance business and if they are not going to insure anyone, then what exactly is their business?
what kind of incentive should government give to a business? why don’t the regular rules of free markets apply here?
what is a “government incentive” anyway? isn’t that just them giving OUR money to someone?
Do you carry liability? And if so, what does that run you?
hey folks we have to be able to trust SOMEONE,we sure can't trust the folks in D.C.
Ignorant crap like this and the laws that get created as a result of this selfishness is why you don't have insurance.
When was the last time a hurricane hit Montana, California or Oklahoma? If you believe that the entire country should pay more so you beach goers can pay the same, then guess what, WE ALL END UP WITH GOVERNMENT RUN HOME INSURANCE. I'm sure they'll be far more responsive in paying out than State Farm was. Good luck with that.
No & nothing
Allstate and State Farm were once good reputable companies...unfortunately both companies have sullied their reputations by consistently denying claims they should’ve paid.
When I was in NO volunteering after Katrina, I learned that the locals considered State Farm, Allstate & FEMA to all be four letter words.