The State Farm insurance giant has decided its finances are no longer able to handle the costs of supporting Florida homeowners. 1.2 million people in the Sunshine State will be affected by this abandonment within the next two years.
So what went wrong?
State Farm asserts that it was spending more on claims than it was making on premiums due to the cost of hurricane repair.
In the past, State Farm has plead with Florida's Office of Insurance Regulation to increase rate percentages on premiums. Recently, State Farm was denied a 67%, then a 47% rate increase request. Should we as Floridians be glad that State Farm is leaving us under water? Yes; absolutely.
If State Farm was granted these requests by Florida Insurance Commissioner, Kevin McCarty, we would be paying a fortune for not only homeowners insurance, but renters, condo, boat, business property, and some liability policies as well. I say good riddance to State Farm and their ridiculous requests, and welcome in those that actually want to help.
Many will soon realize that Independent Insurance Agencies are a better alternative to these large single carriers that have the ability to flee town when the going gets tough. Independent agents are not tied to a single carrier - they will shop the top carriers to find YOU the best deals. Why chance the assets you've worked so hard for? Consider a local, independent insurance carrier.
Protection Connection Insurance is located in South Florida, and we've been serving customers since 1977. We know it's important to keep up with the changes in your life. For more information on Florida homeowners insurance, contact us today!