State Farm Home Insurance Florida

State Farm Home Insurance Florida

State Farm Home Insurance Florida

State Farm stated Tuesday that it would quit providing property insurance in Florida, less than two weeks after state regulators rejected its proposal for a 47.1 percent rate increase.

In addition, Gov. Charlie Crist said that the state shouldn't miss State Farm all that much, despite the fact that customers have up to two years to obtain new insurance.

At a news conference on Tuesday afternoon, Crist criticised the business and claimed that "they charge about the highest rates in the state." Floridans will be far better off without them, in my opinion.

Approximately 1.2 million Florida policyholders are impacted by the departure.

According to law Farm, they will have more time than the 180 days the law stipulates to obtain other homeowner plans.

Additionally, it will keep providing Florida residents with health, life, and vehicle insurance, despite the possibility that the Legislature could force the business to sell everything at once.

The company's president, Jim Thompson, said in a statement, "We did not want to take this move, but it is one we must given the reality of the Florida property insurance market."We regret the impact that this will have on our customers, employees, and agents in Florida."

More than 700,000 homeowner policies, nearly 80,000 condominium owner policies, and over 62,000 renter policies will all eventually be cancelled, according to State Farm.

Additionally, nearly 58,000 boat owners would be impacted. The business said that the rate increase was necessary to aid in its recovery after taking a financial hit during the devasting hurricane season of 2004.

Due to the storms, the Florida subsidiary had to borrow $750 million from State Farm Mutual of Illinois, the company's parent. The Florida affiliate reported on Tuesday that this debt is still unpaid and that its surplus decreased by an additional $201 million in the first three quarters of 2008.

Insurance Commissioner Kevin McCarty, who rejected State Farm's rate rise and must approve its withdrawal, hinted that a fight would be in store for him over the 90 days he has to do so.

In a statement released by his office, McCarty stated, "We will... assure that they are in conformity with Florida law; and we will examine all legal possibilities as well. "I will take every action in my power to protect Florida consumers from needless insurance market destabilisation that this may cause and to ensure that Florida consumers are protected and have access to insurance at rates that are not excessive or unfairly discriminatory."

A bill being drafted by Senate President Pro Tem Mike Fasano, R-New Port Richey, that would restrict the number of "non-renewals" a firm like State Farm may provide in a year was also mentioned by McCarty as a potential obstacle.

Rep. Charles McBurney, R-Jacksonville, a member of the committee, predicted that corporate executives would be subjected to challenging questions at a hearing of the House Insurance, Business, and Financial Affairs Policy Committee the following week.

He declared, "What happened today is disturbing, and you can be sure we're going to be closely examining it."

After exiting Florida's real estate market, McBurney questioned whether State Farm should be permitted to continue marketing other goods with more earning potential.

In this state, "selling insurance is a privilege," he declared. And if they decide to discontinue 800,000 homeowner insurance in the state while keeping the profitable lines, they will need to justify their decision.

According to McBurney, the insurance committee may decide to require companies to offer property insurance in exchange for being permitted to offer auto insurance and other lines.

Crist declared he would back that idea.

Customers were furious at the company's exit, calling it a betrayal.

Many made threats to switch auto insurance providers as well.

Gary Newman of Orange Park stated, "I think this is an absolute, total slap in the face to every single customer who has ever written a cheque to State Farm." "Your client has consistently remained a State Farm customer. Customers do not feel that State Farm is devoted to them.

State Farm has provided Susan Sweat of Mandarin with home insurance for the past 22 years as well as three different types of motor insurance.

She stated that she intended to shop around for a new house and auto insurance provider.

"If everybody does that, they (State Farm) can just pack up and not be bothered with Florida anymore, which would probably be a good thing," the woman said.

Roger Smith, a resident of San Marco, claimed that he has never looked elsewhere for auto insurance because he is confidence in State Farm's customer service and believes that the company was instrumental in Florida's storm recovery efforts.

I'm astonished, to be honest, he said. "Instead of shopping around, I decided to keep my house and cars with them. I most certainly won't continue to do that.