State Farm Moves Out of Florida

Florida Pensacola Florida's largest private property insurer stunned customers announcing they will no longer provide homeowners insurance in Florida.

by Debbie Williams

Published: Tue, January 27, 2009 - 4:52 pm CST Last Updated: Tue, January 27, 2009 - 5:36 pm CST

George Erickson's family has lived in one home for almost 20 years. Their homeowners insurance provided by State Farm.
"never had any trouble. They always took care of everything. We never had any claims," says Erickson.
News Five was the first to tell him, that may not be the case much longer. In a statement released Monday morning, the company said it made the decision to discontinue homeowners insurance after failing to get state approval to raise it rates...
Florida's insurance commissioner calls the news disappointing and later Kevin McCarty added, "We will carefully review State Farm's intended plans to ensure that they are in compliance with Florida law; and will explore all legal options as well."
State Farm may no longer insure property but they are still insuring cars in Florida. But they won't be insuring the Erickson's. They say if you take away their homeowners policy, they'll take away auto insurance premium.
"I'll have to do some checking around with insurance companies now and see what I can get," says Erickson.
Since 1991, he's never had to worry about being insured. Now it's all George Erickson can think about.
The decision will affect just over a million customers but not right away. First there will be a 90 day regulatory review and then the company will have to give six month notice before discontinuing any policy.

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