Friday, July 20, 2007

State Farm to Drop 50,000 Homeowner Policies

I'm disappointed, but not surprised that State Farm is going to drop 50,000 homeowners policies. Governor Charlie Crist temporarily freezed property insurance. The industry responded by suing the state. Homeowner insurance companies view Florida as a financial loser. State Farm will drop the policies starting Jan. 1, 2008. Many coastal homeowners will have to search for new insurance. Other inland homeowners are also affected.

Florida government appears to be playing tough with State Farm.


"If State Farm reduces exposure in Florida through the non-renewal of property insurance policies, the Office of Insurance Regulation will revisit State Farm's rates to ensure they are not excessive," Florida Insurance Commissioner Kevin McCarty said.


Short answer: if State Farm doesn't want state government looking into their rates then they better increase homeowner coverage. McCarty is not finished with State Farm.


"These actions are inconsistent with State Farm's previous statements outlining their underwriting intentions," McCarty said in a statement released by his office. "The office is in the process of reviewing these filings to ensure they are consistent with Florida law."


The South Florida Business Journal reports that McCarthy's comment might mean that he will not allow any of the policies to be cancelled.

CFO Alex Sink described State Farm as having "disregard for long-standing customer relationships."

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5 Comments:

At July 21, 2007 1:49 AM , Anonymous Anonymous said...

Until our state government gets it right, the only thing you can do as a homeowner is to keep shopping your policy around.

Check out the Home Insurance Buyers Guide

located at

www.homeinsurancebuyers.org

The Buyers Guide will be available in early August and will feature the names of insurance companies writing new business in your county.

It will also allow you to rank the company based on a Buyers Guide rating and will include convenient links to company websites and to agents who can quote you a policy.

Good luck!

 
At July 21, 2007 3:18 PM , Blogger tas said...

Crist is sticking the government's nose into a private business? For a minute there, he almost sounds not like a Republican. What's up with that? :)

It's probably a wise move for Crist. I know he's trying to get a tax break passed for Florida homeowners, and something has to be done to curb the costs of owning a home out there. I remember my friend in Orlando telling me about how much the taxes and home owners insurance rates on his house have gone up in the past couple of years and the amount of money is outrageous.

 
At October 25, 2007 12:24 PM , Blogger JV said...

check here:

http://www.autoandhomeinsurance.org/florida-homeowners-insurance.html

 
At November 29, 2008 9:15 PM , Blogger Kristi said...

We are not in a hurricane area and they are dropping us after 16 years with no home claims - no auto claims either for that matter. Furthermore, we don't intend to have any claims. We are very private people who keep to ourselves and love our home.

They came in our yard snooping when we were told they'd just be driving by on the road. We had a small 2.5 foot ladder in our above ground shallow pool with a pool cover on. They had to have got behind our privacy fence and been picking up and looking under our pool cover to see it.

We got the letter a couple of weeks ago. It seems terribly unfair and invasive of our privacy.
We are going to try to reason with them but a friend said they did her son like this because he had bought his child a trampoline. Just dropped him cold after finding it in his yard.

 
At October 09, 2010 4:16 PM , Anonymous Andrew said...

i am a florida home owner and i cant take it any more from my inusrance companies. not only are the rates going up and up, you cant even depend on these companies any more either to be around. im at a lost for words. i dont know what to say anymore

 

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