[Breaking] State Farm pulling out of Florida for ALL Homeowners insurance

[WhereOWhere]

http://www.palmbeachpost.com/politics/content/business/epaper/2009/01/27/0127statefarm.html

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.

They are giving people 2 years to find other insurance, although it still has to pass the regulatory board. Lots of people in Florida are going to be very unhappy about this.

 

[CapeCodTenor]

At least people are getting a 2 year notice. My wife and I discovered that we needed to find a new home insurance company when we had a check returned to us. So we called and were told that they were out of business. No notice no nothing. We wound up going with the state's plan because so many companies are no longer writing policies for the Cape.

 

[Tine731]

http://www.palmbeachpost.com/politics/content/business/epaper/2009/01/27/0127statefarm.html



They are giving people 2 years to find other insurance, although it still has to pass the regulatory board. Lots of people in Florida are going to be very unhappy about this.

Oh my! Dont get me started on the insurance industry. I say good riddance to state farm....but.....I think insurance needs to be a all or nothing. If they do not want to sell home policy's they should not be allowed to sell any other type of insurance in the state of Florida. They should not be allowed to pick and choose.

 

[Cool-Beans]

People have two years to find another company. If it leaves people without insurance, it isn't State Farm's fault. It is the fault of the idiot who didn't switch companies.

Anyone who wants to can open an insurance company and provide insurance to the folks State Farm doesn't want to cover. I encourage everyone who thinks that there is money to be made insuring those properties to do it. If you do't want to get involved in the insurance business, leave it to the guys who do.

 

[DrCavin]

Oh my! Dont get me started on the insurance industry. I say good riddance to state farm....but.....I think insurance needs to be a all or nothing. If they do not want to sell home policy's they should not be allowed to sell any other type of insurance in the state of Florida. They should not be allowed to pick and choose.

What about the insurance companies that only insure vehicles, you want them to be forced to sell homeowners insurance?

State Farm is getting out because they are not making money & people could not afford the premiums for them to make money.

 

[WhereOWhere]

Ok, why are we ragging on people two years in the future? This isn't about that.

 

[WhereOWhere]

What about the insurance companies that only insure vehicles, you want them to be forced to sell homeowners insurance?

State Farm is getting out because they are not making money & people could not afford the premiums for them to make money.

TBH, they are getting out because for years Florida was spared from most hurricanes, and State Farm made millions. Now they got smacked with a couple years of hurricanes (although none recently), and they obviously did not plan for it.

Do I blame them for leaving? Of course not, it's business. However, I don't even begin to believe that they didn't bring this upon themselves, and that their own short-sightedness will screw some people over (I doubt most people will end up paying the same amount for their homeowners insurance).

 

[Tine731]

People have two years to find another company. If it leaves people without insurance, it isn't State Farm's fault. It is the fault of the idiot who didn't switch companies.

Anyone who wants to can open an insurance company and provide insurance to the folks State Farm doesn't want to cover. I encourage everyone who thinks that there is money to be made insuring those properties to do it. If you do't want to get involved in the insurance business, leave it to the guys who do.

They are still making money by insuring "those" properties...maybe just not as much as they would like.

State Farm Insurance's chairman and CEO received an 82 percent raise after the company posted a record profit last year, a statement from the Bloomington-Ill.-based insurer said this week.

Chairman and Chief Executive Officer Ed Rust Jr. got a $5.26 million raise. He earned $11.66 million in 2006 with a base salary of $1.77 million and results-based bonus of $9.89 million, the statement said. Rust made $6.4 million in 2005 and $5.5 million in 2004.

The absence of a major catastrophe helped the insurer generate a record $5.32 billion profit last year, compared to $3.24 billion in 2005 when Hurricane Katrina hit the Mississippi Gulf Coast, release said.

 

[DrCavin]

Ok, why are we ragging on people two years in the future? This isn't about that.

Because people won't do anything until they are forced, see the TV Transition as a perfect example.

 

[Cool-Beans]

Ok, why are we ragging on people two years in the future? This isn't about that.

Because someone posted a thread about these people who will be left without insurance in two years.

They are still making money by insuring "those" properties...maybe just not as much as they would like.

If you think there is money to be made insuring Floridians, go do it. Nothing is stopping you. If you don't want to be in the insurance business, why not leave it to the folks who do?

Because people won't do anything until they are forced, see the TV Transition as a perfect example.

OMG, I'm so sick of hearing about that...and now they're saying they're going to put it off so that we can hear about it some more.

 

[WhereOWhere]

Because someone posted a thread about these people who will be left without insurance in two years.

Uhmm, it wasn't about "those" people, it was about State Farm pulling out of Florida.

But hey, if you want to make it into a big negative thread, you're doing a great job!! Jeesh, time for me to go outside.

 

[luvmy3]

Uhmm, it wasn't about "those" people, it was about State Farm pulling out of Florida.

But hey, if you want to make it into a big negative thread, you're doing a great job!! Jeesh, time for me to go outside.

State Farm pulling out isn't a negative thing

 

[Sneezie]

Insurance is the biggest con job I've ever seen.

 

[Tine731]

If you think there is money to be made insuring Floridians, go do it. Nothing is stopping you. If you don't want to be in the insurance business, why not leave it to the folks who do?

QUOTE]

No thank you! I dislike dealing with my own insurance issues. And yes I do think they are still making money insuring Floridians but it is just not as much as they would like.

 

[Mikelly1221]

What about the insurance companies that only insure vehicles, you want them to be forced to sell homeowners insurance?

State Farm is getting out because they are not making money & people could not afford the premiums for them to make money.

The law says that if they sell homeowners and auto policies in other states, they have to do the same in Florida. They can't just sell auto policies. If a company's entire business is auto policies, then they're ok.

 

[Cool-Beans]

Uhmm, it wasn't about "those" people, it was about State Farm pulling out of Florida.

But hey, if you want to make it into a big negative thread, you're doing a great job!! Jeesh, time for me to go outside.

You wanted a negative thread. Only you wanted all the negativity to be heaped upon State Farm. Is that correct?

I don't think there is anything wrong with State Farm pulling out. I think there is something wrong with people forcing other people - especially businesses - to do what they think is right.

I'm always on the side of the business getting to choose what the business does and letting the business reap the rewards or suffer the downfall.

I don't see having people mind their own business and leaving others to theirs as a negative thing. I see forcing your will on others as the negative.

And I'll applaud anyone who goes to Florida and does what State Farm has chosen not to do when they are successful. I'll be genuinely happy for them.

 

[diznygirl]

State Farm pulling out isn't a negative thing

Sure it is. It leaves us with one less choice. Less choices = less competition = higher rates.

Since it's currently what we have, we will no doubt take our auto insurance policies with us to try to get a better rate with another insurance company.

And our State Farm agent (whom we are friends with) is going to get royally big-time screwed here. I feel really bad for her.

 

[Cool-Beans]

No thank you! I dislike dealing with my own insurance issues. And yes I do think they are still making money insuring Floridians but it is just not as much as they would like.

If there is money to be made there, someone will show up to collect it.

Most businesses don't say, "We're making money, but we'd like to stop." Most businesses want to make money.

If there is money to be made and State Farm is just being stupid, I PROMISE you that someone else will show up to make the money.

Me, myself, I wouldn't want to be in the business of insuring homes in Florida. Doesn't seem like a winning proposition to me.

 

[Loverly]

Whenever I've compared rates, State Farm is always on the high side. We have Allstate for Car, house and Life.

Still does sucks that those in Florida have less competition which equals higher rates

 

[Trish Bessette]

I feel for Florida however I'm happy State Farm is making business decisions to keep their company strong.