State Farm To Withdraw Homeowners Business From Florida
Jan 27, 2009
Early media reports indicate that State Farm Insurance Company is withdrawing its homeowners insurance business from Florida. A press conference on the issue is scheduled for noon today, January 27, 2009.
A Colodny Fass representative will attend the conference and provide a report on the proceedings.
A report on the issue by the Palm Beach Post is reprinted below.
Should you have any questions or comments, please do not hesistate to contact this office.
State Farm pulling out of Florida
By RANDY DIAMOND
Palm Beach Post Staff Writer
Tuesday, January 27, 2009
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.