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.
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.