State Farm seeks To Increase Florida Homeowner Policies On Average of 47%

By
Industry Observer with No longer practicing real estate as of 2008.

State Farm has asked for an average increase of 47% on Florida Homeowner's policies. 

If the rate hike is passed, south Florida residents in Miami-Dade could see rate hikes as high as 70%.

"State Farm, which has been working aggressively in recent years to reduce its catastrophe risk in Florida, said earlier this year it wouldn't write new homeowner policies in the state. State Farm hasn't written new policies in South Florida for more than a decade. It's also not renewing about 50,000 policies in coastal areas throughout the state over the next year."

"State Farm's last rate increase was approved in 2006. That rate hike left many South Florida policyholders with premiums that jumped 100 percent or more."

If this is passed, it would effective for policy renewals starting March 1, 2009.  An August 12th hearing in Tallahassee is set.  It will be interesting to see what happens!!

How's that commercial go again?  "Like a good neighbor, State Farm is there"......NOT!!

What are your thoughts on this?

Comments (6)

Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

You are in good hands...wait wrong thief...Another rate increase!

Jul 17, 2008 02:50 AM
Anonymous
Tim Roman

Wow, is that State Farm commercial mixed in with this article by accident or on purpose?

Becky, nice job on your blog - good informative comments.

If you hear about anyone losing their Florida homeowners insurance or you are just trying to get a real estate transaction to close, you should check out this website:

www.homeinsurancebuyers.org

It tells you all of the companies writing new business in Manatee and Hillsborough County and what kind of home they cover.

There is no reason anyone should be putting up with massive State Farm increases at this time.

 

Jul 18, 2008 07:48 AM
#2
Anonymous
Someone who actually thinks....

Everyone wonder why most successful, large companies are not writing new insurance in Florida?

Could it be because they make so much money now, that they don't know what to do with it, and having more income and more profit will just be too overwhelming.?

That is the way you people sound.

The fact of the matter is, and has been, that insurers are not real fond of Florida.  The risks associated with writing policies in the state are astronomical, and insurers cannot set their own rates.  They are set for them by central planners.  And guess what?  The central planners, who want your vote at any cost, are of the same ilk as the financial geniuses who have given us $10 trillion dollars of national debt.

The short term thinkers in Tallahassee have created a state insurance company that did not charge high enough premiums.  Each of you pays a surcharge on each of your family insurance policies (regardless of who you have your insurance with) to pay for the shortage that was incurred by the Citizens Ins. Co from 2004.  And then guess what?  They LOWERED the rates even more!  They weren't charging enough, didn't have enough to cover claims, had to use taxpayer money, and then surcharge polices to pay for it - ALL POLICIES in the state.... and then they decided to lower premiums even more.

THESE are the geniuses who tell private insurers the rates they should charge.

Knee jerk liberals are aptly named.  No thinking, just emotional response.

"Oh!  I am going to have to pay more money?  That's BAD.  That's EVIL.  I don't FEEL very good about that!"

If we don't have some people willing to THINK about our insurance problems in Florida, the situation is not going to get better, it will deteriorate very fast.

Jul 18, 2008 03:04 PM
#3
Todd Clark
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

So at what point do the insurance policy costs pass the actual mortgage payment? DANG!

Todd Clark, Helping Families Home - www.IFoundYourNewHome.com

Jul 18, 2008 05:12 PM
Tchaka Owen
Galleria International Realty - Hollywood, FL

Someone who actually thinks........but can't think enough to log in before posting?  And can't think enough to realize Tallahassee isn't "liberal" run?

 

Jul 18, 2008 05:28 PM
Becky Troutt
No longer practicing real estate as of 2008. - Bradenton, FL

Gary...LOL

Tim, it's there on purpose.  I thought it was funny how they have that commercial for their car insurance.  "Better service for the same price" kind of thing....yet they want a rate hike of 47% and won't write any new policies in Florida for homeowners.  Oh the irony!

Todd, not too much longer.  Between taxes and insurance, it's almost a second mortgage payment for some people!

Tchaka,  thank you! 

Jul 19, 2008 12:16 AM

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