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State Farm Staying In Florida
December 17, 2009
State Farm has backed out of a plan to leave Florida after reaching an agreement with the state that allows the company to hike rates and cancel higher risk policy holders.
Under terms of a consent order announced Wednesday, State Farm was granted a 14.8 percent rate increase for all homeowners’ and condominium unit owners policies. The consent order concludes a series of events that began with the Florida Office of Insurance Regulation’s denial of State Farm Florida’s ultimate average rate request of 67.1 percent.
The company will also be allowed to rescind discounts previous granted for policyholders that hardened their homes against hurricanes, amounting to as much as 28 percent rate increase for those that had received the discounts.
Under the terms of the Consent Order, State Farm Florida will non-renew no more than 125,000 policies of its 810,416 residential property policies reported as of October 2009. Even after these non-renewals, State Farm Florida will remain the largest private insurer of property insurance risk in the state of Florida.
“This agreement is the product of a long and arduous negotiation process,” said Insurance Commissioner Kevin McCarty. “The final result is beneficial to the people of the State of Florida, and beneficial to the Florida insurance marketplace. The consent order satisfies the Office’s requirements issued in our Order dated February 13, 2009, and allows State Farm Florida to remain a viable insurer in the Florida market.”
The consent order will allow State Farm’s agents to sell policies from 16 other companies to canceled policyholders. That will help keep the canceled policyholders out of the state-run Citizens insurance company.
“Property policies designated for non-renewal will receive at least six months advance notice and State Farm agents will be able to provide affected residential customers with other insurance options. New rates will go into effect as policies are renewed,” said State Farm Florida President Jim Thompson. “We apologize for any inconvenience or anxiety this process might cause our customers, but this is a necessary step for us as we attempt to stabilize State Farm Florida’s financial condition and serve our remaining customers.”
Comments
8 Responses to “State Farm Staying In Florida”
Everyone has the option to shop for (and they should) for equivalent/better coverage with any insurance company. If the rates climb too high with your carrier then you have the right to seek coverage elsewhere.
Wild Bill,
I am just a consumer like yourself. These are the only things I know first hand:
State Farm has been easy to deal with and quick to pay without hassle. When I had offers from other companies who had lower rates, I did not switch. I have heard others complain about other companies and just didn’t want to leave my agent whose people and himself were patient, knew me by name, and paid claims in a timely manner. My original agent retired, and the one I was transferred to, and his staff, have also been very helpful. I am not a world wealthy person. I am, I suppose, middle class. Not upper middle class. Just regular middle class. I still prefer quality over quantity, in things that are important. State Farm has always shown me, personally, caring and professionalism, unlike some others I have dealt with in the distant past. If that changes I will change. I plan to stay, until it does. I hope it does not. Especially, after Ivan, I was very pleased with their fairness, kindness, and professionalism. Maybe talking with them, and trying to work something out works better than accusations and desertion. Maybe I’m just blessed. I do not know your experience with them. I only know mine.
EMD,
I do recognize that hurricanes Jeanne, Dennis, Katrina, Wilma, and Ivan were all very costly storms for insurance companies. But I also recognize these three facts which have solidified my decision.
1. For far more years than not, State Farm collected premiums without having to pay out for natural disasters. Did State Farm offer to lower my premiums during those periods? NO!
2. Has every other insurance company who also suffered major financial losses from those events doubled and sometimes tripled insurance rates? NO!
3. Have those other insurers made the kind of threats and outrageuos requests for increases along the lines of what State Farm has done? NO!
IMHO State Farm can take their business elsewhere. I know I will, and I am sure many others will as well.
I guess you’re just not looking at it the way I am. I know that the people were hit hard. And, yes……that is what insurance companies are for. However, I have never seen two disasters back to back like Ivan and Katrina. I was amazed that any insurance company survived. I do not think like I once thought, and lump everyone into one basket……as in………”They have a lot more money than I do. They can stand a hit better than I can.” No, because, after these two storms, I began thinking how much overhead these folks have. Like us, they have bills, but they have them on a much larger scale than most of us. Think. There are: buildings, employees, employee benefits, lights, water, phone, insurance, gasoline, on and on, just like us, except their bills are much much higher. There employees don’t all sit in the office. They have field workers too. I do not know about the rest of you, but I could never have imagined a disaster the size of Ivan and Katrina, together. I doubt anyone could. I’m just glad they came through and didn’t run. I am willing to pay more to see them get back on their feet. If people would call and talk with their agents, they might could help one another out. If you have a new roof since Ivan, and have it inspected, and it is found to be up to code, you could get a very big deduction in your premium. Did you know that? These are people, making a living just like the rest of us. And……no. I do not have any monetary interest in this company, except my auto and home insurance. The government is stealing us blind, and has been, even before WW1, and we keep putting the same thieves back in office No. I do not think everyone in the government is crooked, but along with the big dog bankers, I believe most of them are way less than honest. I no longer consider myself affiliated with any political party. Why don’t we run some of these traitors out of the country? They are probably behind most of the insurance industries problems. They are regulating America into her grave.
I am so glad I went to another insurer almost a year ago when State Farm wanted to pull out then. I now have better coverage for less $. If I were still with State Farm, I would have a higher rate plus lose my hurricane hardening discount. And that’s if I wasn’t dropped altogether!
EMD obviously has a personal stake in State Farm to make such outlandish statements.
I too have been insured with State Farm for over 30 years, but I guarantee I won’t be insured by them in any manner in 30 days. This is just another example of greedy corporate big dogs running a once good company into the ground.
Say good bye to a loyal customer State Farm, your greed will hopefully be your demise.
Are you kidding me, EMD? You don’t know how an insurance company survived being “hit hard” by Ivan and Katrina? Being “hit hard” is part of their biznessss! If State Farm didn’t have a plan for being “hit hard” then they don’t belong in the state to begin with. Further more State Farm wanted to increase your rate by as much as 67% and you are okay with that?
” I am so glad. I have had my house and auto insurance with State Farm for about 30 years. They have always been helpful and are a pleasure to do business with. Especially after Ivan. They got hit hard by Ivan and Katrina. I do not know how they have survived. I wish them well.” Geez get a clue!
I am so glad. I have had my house and auto insurance with State Farm for about 30 years. They have always been helpful and are a pleasure to do business with. Especially after Ivan. They got hit hard by Ivan and Katrina. I do not know how they have survived. I wish them well.