State Farm in Florida [update: will not withdraw]

Yikes!

State Farm Insurance won't sell Florida property policies

Gov. Charlie Crist effectively said good riddance. "They probably charge the highest rates in the state, anyway. Floridians will be much better off without them." When asked if State Farm was "posturing," Crist said, "I don't really know, and I don't really care."

Later Crist said he would support any lawmaker who took a better crack at tweaking the cherry-picking law to prevent State Farm from writing auto policies.

Anyone who has a SF auto policy, it's time to cancel immediately.

I just got of the phone with my SF agent here in TN. We have an umbrella liability policy that extends to our home in SGB. She informed me that there would be no changes because the policy is not concerned with the structure, only with the liability.

That was good news.

State Farm dropped us immediately after Ivan. We had no damage and there has never been a claim filed on this house in 10 years...WTF! We cancelled our State Farm auto policy one week after they dropped our homeownwers policy, but I don't think they cared much. Insurance, what a scam!!!

I'm not surprised. I dropped State Farm two years ago, for my auto policies, too. From what I understand, State Farm treated some of their customer like crap in Mississippi after the storms in 2004 and 2005. Also, after those storms, they stopped writing policies on properties within 5000ft (almost one mile) from the Gulf and 500ft from the Bay, which basically means that they weren't writing any policies in south of the Bay in Walton County. No surprise here.

like a bad neighbor....

http://www.orlandosentinel.com/busi...ll-out-of-florida-012709,0,6930901.storyState Farm to stop offering homeowners insurance in Florida

Anika Myers Palm | Sentinel Staff Writer
11:54 AM EST, January 27, 2009

Citing its inability to win state approval to raise its property insurance rates, State Farm Florida said Tuesday that it has filed plans to pull out of Florida's homeowners insurance market.

The company has submitted a two-year plan to state insurance regulators that it says will minimize disruptions and allow its current policyholders enough time to find new coverage.

"Faced with steeply declining resources to cover future claims and expenses, State Farm Florida has little choice," Jim Thompson, president of State Farm Florida, said in a prepared statement. "This is not an action we wanted to take, but one we must take given the realities of the Florida property insurance market."

Most recently, Florida Insurance Commissioner Kevin McCarty on Jan. 12 denied the company's request for a 47 percent rate increase.

state farm isn't there

Government mandates caps on insurance company rates. Insurance companies run the numbers and realize they are risking major loss. Insurance companies pull out of the market. Government takes over and insures the people insurance companies felt were a bad risk at the rates the government forced them to charge. Government realizes they can charge certain people one rate and other people another rate independent of risk.

Socialism gains, capitalism dies.

Doesn't USAA do the same thing?

*edited to add that they will insure automobiles but not houses in Florida.

I'm not surprised. I dropped State Farm two years ago, for my auto policies, too. From what I understand, State Farm treated some of their customer like crap in Mississippi after the storms in 2004 and 2005. Also, after those storms, they stopped writing policies on properties within 5000ft (almost one mile) from the Gulf and 500ft from the Bay, which basically means that they weren't writing any policies in south of the Bay in Walton County. No surprise here.

Crap is an understatement. Some friends of ours lived 20 miles from the Gulf and lost everything. State Farm claimed it was flooding, they weren't within 2 miles of a body of water, and they are still fighting to get their money. They were faithful customers for 10 years. State Farm sucks and I hope they go under after all the bailout money is gone.

Yep, read my sig.

State Farm is Leaving and AAA is coming in

Crap is an understatement. Some friends of ours lived 20 miles from the Gulf and lost everything. State Farm claimed it was flooding, they weren't within 2 miles of a body of water, and they are still fighting to get their money. They were faithful customers for 10 years. State Farm sucks and I hope they go under after all the bailout money is gone.

AAA Auto Club a household name is bringing their package insurance program to the panhandle. It is the first prgram in many years that gives the homeowner packaged with the auto the way State Farm and Allstate did it for years. Coastal Insurance Agency in Seagrove and in Destin will be the AAA agents for our area. Will be interesting to see how competitive AAA is and how they demonstrate a committment for the long run.

State Farm Pulling OUT THE REAL STORY

State Farm lost their shirts in Misssippi after Katrina. Even after denying claims that should not have been denyed, they lost mega money. In Florida they are ABSOLUTELY playing a shell game. They are announcing their intention to pull out of Florida in order to force a Federal Catastrophe Fund vs. a State of FL fund. This would give them profit guarantees. Gov. Christ knows it and congrats to him for not playing their game. If you think insurance is expensive now, you let those guys in Washington be in control and you will see how expensive it can be.

boo-hoo insurance companies

I'd love to see the amount of premiums people paid in versus the amount the poor insurance company had to pay out. :roll:

It's a rare case when insurance companies don't make a profit. They may have a rough year, but in the long haul they still make $$$.

All insurance companies purchase re-insurance and therefore they did not take huge losses from what I understand. Their insurance cost went up after this though, but not double like mine did after 2005. Get your other insurance from another company.

Yikes!

State Farm Insurance won't sell Florida property policies



Anyone who has a SF auto policy, it's time to cancel immediately.

I had already canceled the autos- Will turned 16 and SF is twice as much as other companies for under 21 males. Our SF office confirmed this- they can't compete. So we found other coverage.

Who did you switch to??

Who did you switch to??

Geico. Same coverage- and savings from switching to Geico from SF offset adding a 16 year old. My annual Geico premium for 3 cars/2 "mature" drivers and one 16 yr old boy is the same as 3 cars/2 mature drivers, NO 16 year old with SF.

I am sure people have horror stories about Geico. Whatever. There is not an insurance company on the planet that doesn't have multiple complaints about them- nature of the biz.

State Farm

Geico. Same coverage- and savings from switching to Geico from SF offset adding a 16 year old. My annual Geico premium for 3 cars/2 "mature" drivers and one 16 yr old boy is the same as 3 cars/2 mature drivers, NO 16 year old with SF.

I am sure people have horror stories about Geico. Whatever. There is not an insurance company on the planet that doesn't have multiple complaints about them- nature of the biz.

State farm is a VERY mainstream insurance company. They have been around for a billion years becasue they do not deviate from their PLAN. I think they are the largest personal lines insurance company in the U.S. . If they can't do it their way, they "PUNT"..

They are trying to use their influence to have their way in Florida. Thankfully for those of us in Walton County, their decision will have little effect. State Farm hasn't been a player here in the homeowner insurance market for a long time. I own Coastal Insurance Agency and in the eight years that we have been here I can't recall losing a client or propspective client to State Farm. Even in the State as a whole, their decision will be frustrating to long term customers, but as you have stated, there are companies (for now) willing to pick up their slack. The insurance market in Florida overall is better than it has been in a long time. (A couple of major storms will of course change that, as we have all seen.) Lets hope Jim Cantore' doesn't come see us for a long time.

Anyone who has a SF auto policy, it's time to cancel immediately.

While I totally understand this type of reaction please remember that unlike some internet based auto insurers all State Farm policies are serviced by a local agent. These local agents are your neighbors and friends and just experienced the brunt of a decision that they had no control over. Not only did they lose the residential home insurance market but also the commercial insurance business; two-thirds of their revenue stream just evaporated. They are "exclusive" agents, meaning they can't simply pick up another carrier.

While many people will have an ax to grind against State Farm (corporate) please don't forget that the simple act of changing your auto insurance may put your neighbor down the street, ON THE STREET. Just like every other bit of bad news we hear in this current economy there are real live people behind every headline.

disclosure: I'm not connected with State Farm in any way, even as a client, but I do have a close friend who has been an agent in Niceville for many years. He grew up there and insures his family, friends, neighbors and fellow church members. He is one of dozens of agents in our local area that shop at the same stores you do; or at least they used to.

State farm

While I totally understand this type of reaction please remember that unlike some internet based auto insurers all State Farm policies are serviced by a local agent. These local agents are your neighbors and friends and just experienced the brunt of a decision that they had no control over. Not only did they lose the residential home insurance market but also the commercial insurance business; two-thirds of their revenue stream just evaporated. They are "exclusive" agents, meaning they can't simply pick up another carrier.

While many people will have an ax to grind against State Farm (corporate) please don't forget that the simple act of changing your auto insurance may put your neighbor down the street, ON THE STREET. Just like every other bit of bad news we hear in this current economy there are real live people behind every headline.

disclosure: I'm not connected with State Farm in any way, even as a client, but I do have a close friend who has been an agent in Niceville for many years. He grew up there and insures his family, friends, neighbors and fellow church members. He is one of dozens of agents in our local area that shop at the same stores you do; or at least they used to.

AS A COMPETITOR TO STATE FARM, VERY VERY WELL PUT.. Lets all remember that this is going to hurt a lot of Florida Residents, mostly good honest working folks that make their living associated in one way or another with State Farm.. Thanks for the heart felt reminder.

I understand about the SF offices being locally owned. HOWEVER, SF had the chance to do what is right and from all I hear, they failed miserably in covering clients.

As Mayor and I stated, State Farm left many people high and dry, without coverage, when they moved their NO-coverage area from 2000 ft from the Gulf, to 5000 ft from the Gulf, so they lost most of their existing business in South Walton when that happened. Up until one year ago, I had been a State Farm customer for 18 years.

My personal thoughts are, if SF isn't going to cover my house when the time comes, what makes me think that they will cover my autos when the time comes? Consumers have the choice to speak with their pocket books, and we can either reward or punish bad behavior. I choose to reward good behavior. I do feel bad for the employees of SF, just as I do for any of the other thousands of people who are losing their jobs, or have had their wages chopped during this struggling economy.

I understand about the SF offices being locally owned. HOWEVER, SF had the chance to do what is right and from all I hear, they failed miserably in covering clients.

As Mayor and I stated, State Farm left many people high and dry, without coverage, when they moved their NO-coverage area from 2000 ft from the Gulf, to 5000 ft from the Gulf, so they lost most of their existing business in South Walton when that happened.

My personal thoughts are, if SF isn't going to cover my house when the time comes, what makes me think that they will cover my autos when the time comes? Consumers have the choice to speak with their pocket books, and we can either reward or punish bad behavior. I choose to reward good behavior. I do feel bad for the employees of SF, just as I do for any of the other thousands of people who are losing their jobs, or have had their wages chopped during this struggling economy.

Your point is well taken 30abob, but I have to agree with SJ above. I do feel bad for the agents, but if SF can't find a way to make it work without asking for a 47 percent rate increase, the agents should be unhappy with SF, not the public for exercising its right to choose.

The bottom line is that when SF asked for that huge rate increase last year, it was denied because state regulators said the company did not provide enough evidence to support it. In addition, SF Florida's plan involved buying reinsurance from its parent company, instead of on the open market, where it could no doubt get it cheaper.

Now because things didn't go their way, they're leaving thousands of people in the lurch. What the Legislature really needs to do is eliminate the use of these "pup" companies, and let Florida's risk be pooled with the rest of the nation like it does with every other state.

Government mandates caps on insurance company rates. Insurance companies run the numbers and realize they are risking major loss. Insurance companies pull out of the market. Government takes over and insures the people insurance companies felt were a bad risk at the rates the government forced them to charge. Government realizes they can charge certain people one rate and other people another rate independent of risk.

Socialism gains, capitalism dies.

sure, the free market works in the presence of few providers.....capitalism is infallible...that will be the new stimulus package bill name

sure, the free market works in the presence of few providers.....capitalism is infallible...that will be the new stimulus package bill name

Aren't we currently loosing all our providers because government got involved? How many companies have pulled out of the Florida market since we started regulating what they could charge?

Aren't we currently loosing all our providers because government got involved? How many companies have pulled out of the Florida market since we started regulating what they could charge?

let me restate, government is involved because of collusion and profiteering