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

[Trish Bessette]

For those saying this is a good thing would you feel this way if it was your state and your insurance company pulling out?

When I first bought my house years ago we had the unfortunate luck of have a water loss claim as well as ice claim from an ice storm that left us without power for 9 days. After paying those two losses my insurance company dropped me.

I know this is different from "pulling out" however it was done in the same manner, it looked at me/my home as being high risk.

I got a different company and haven't had a claim in 15 years.

 

[bicker]

But in the case of State Farm, didin't the Florida unit buy reinsurance from the parent company at vastly over market prices thus making the Florida unit look unprofitable and requiring the massive hike in rates that was denied?

That's wouldn't matter in the context of the statement you replied to. It was a general statement, "If the state makes the rules such that the insurer cannot assure the underwriters of more profit than they could get by investing their money in some other way, then that state doesn't deserve the insurance company's offerings." There is no reason why State Farm would deliberately deceive itself into having reason to stop offering that insurance in Florida. It isn't a matter of whether or not they have an "excuse" because they do not need an excuse to make the best business decision for the underwriters.