State Farm to Leave Sunshine State

Tuesday, January 27, 2009 - By Gate Arty

State Farm, the largest private property insurer operating in Florida, filed plans to stop selling property insurance in Florida.

The company's departure includes coverage for home owners, renters, personal liability, boats, and business. The company does plan on continuing to write auto policies, where it is the market leader.

Governor Charlie Crist was hardly affected by the announcement of the Insurance giant. "They probably charge the highest rates in the state, anyway. Floridians will be much better off without them," he said. When asked if State Farm was "posturing," Crist said, "I don't really know, and I don't really care."

State Farm recently lost a legal to increase property insurance rates aa astounding 47 percent.

State Farm claims they have been crippled by the state-imposed policy to give hefty discounts to customers who strengthen their homes against hurricanes. It has been losing up to $25 million a month in Florida. This in spite of the fact that there have been no recent hurricanes.

To allow policy holders to find alternative coverage, State Farm plans on phaseing in the cuts over two years.

Before State Farm can proceed, the Florida Office of Insurance Regulation must approve its plan within 90 days. Then, State Farm has to provide 180 days notice to customers before it lets any policies nonrenew.

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