State Farm fleeing Florida.
If you currently hold a homeowners policy with State Farm...you better start your shopping around now. State Farm announced that it will begin dropping it's Florida homeowners policies over the next two years. Of course they are complaining about the 'risk' and not being allowed to raise rates. Being the largest private insurance company in Florida...this decision will impact around 1.2 million policies. They've actually stopped writing new policies a few years ago...and began dropping coastal property policies too.
I personally think that anyone that has an auto or life insurance policy with State Farm should try and move to a new company. I don't think it's right for these large insurance companies to 'pick and choose' what types of insurance they want to offer. Sure...they are a business and have to watch out for the bottom line...but the whole insurance industry is based on risk. Not to mention that when you finally do have a claim...they try every trick in the book to get out of paying it. The way they get out of this is by having a 'Florida' company separate from the parent company. Allstate created 'Allstate Floridian Insurance Company' after Hurricane Andrew. That way if they had a huge payout (another storm)...only the one company would take the hit...leaving the Allstate parent company looking better.
At the end of the day...I guess they can choose to stop coverage...but if they choose that route .... I really think they should be forced out of Florida auto and life insurance as well. Check below if you can find a better auto insurance policy and drop State Farm. Lets show 'em they can't push us around.
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