State Farm Won't Write New Policies

Eddie Farah

Attorney
(866) 735-1102 Ext 415

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State Farm Insurance is Florida's largest private insurer writing policies to cover homeowners in case of loss.

State Farm has decided to stop writing policies in Florida. Don't expect that to hurt the 1 million currently with a homeowner's policy covered by State Farm, but the state run insurer of last resort, Citizens Property Insurance will be expected to pick up the slack.

If you want an answer as to why State Farm has made this move, just follow the money trail.

Last year the leglslature decided to pass legislation that would reduce by nine percent statewide the rates the company can charge for property insurance.

Insurance executives have been on the hot seat lately as Govenor Crist has issued no apologies for publicly criticizing insurance companies for rate increases, lack of honesty and for dropping coverage.

Citing losses in revenues from eight hurricanes in the state in 2004 and 2005, State Farm also says it will drop about 50,000 homeowners policies in coastal areas.