State Farm pulls out of Florida

Discussion in 'Current Events' started by Andrew2382, Jan 28, 2009.

  1. Andrew2382
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    Andrew2382 Gold Member

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    State Farm Pulling Out of Florida Property Insurance Market

    Yet again we see the results of goverment interference on the private sector. The State of Florida has imposed so many regulations and denied repeated rate hikes that are needed by insurance companies to have the money needed to pay claims that it has come down to all the players are leaving the State.

    Allstate did it two years ago and now State Farm has followed suit in processing the non-renewal of every property policy they have.

    The majority of these policies will be forced to go to Citizens Property Insurance Corp the state run insurance company already in dire financial stress.

    The policy holders will mostlikely see their rates jump 200 % in this transfer as Citizens is always more expensive, but they are "the company of last resort" and take everyone.

    All the government interference in not letting companies charge what needs to be charged to cover themselves is forcing every insurance company to stop writing property.

    What a shame
     
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  2. Ravi
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    Ravi Diamond Member

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    LOL! It's got nothing to do with rate hikes, they can't keep insuring sure losers. I can't believe Crist wants to make them quit insuring cars and health to pay them back for pulling out. Way to punish Floridians, you dope.
     
  3. DavidS
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    DavidS Anti-Tea Party Member

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    Ouch. This is bad. The way this year's wind currents are setting up and the lack of cold air over the Atlantic Ocean, this is going to be a bad hurricane season for florida.
     
  4. Andrew2382
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    Andrew2382 Gold Member

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    what the hell are you talking about....it has everything to do with rate hikes...They have been denied on almost every rat eincrease they have asked for to balance their books.

    Same thing that happened with Allstate 2 years ago down here, they got denied so they just non-renewed every policy.
     
  5. WillowTree
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    WillowTree Diamond Member

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    I believe it. I think he is right too. How many home owners have paid their insurance premiums for 20 or 30 years, never made a claim and then were cancelled? That's not fair. Not at all. The punishment fits the crime. If you don't sell and honor your home owners then you cannot sell car and boat insurance. Get yer azz gone.
     
  6. WillowTree
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    WillowTree Diamond Member

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    The taxpayers can pay to fix Florida. Just the way they were forced to pay for New Orleans.
     
  7. Andrew2382
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    Andrew2382 Gold Member

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    it could be...quite hontesly after living here 7 years and hearing every year the predicitions...I just wait and see.

    I was here in 05 after the huge hurricane season...it's not fun.

    I feel bad for the state farm agents who are going to have to tell their clients your property policy premium is going from 1800 a year to 4500 a year now
     
  8. WillowTree
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    WillowTree Diamond Member

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    yep they were begging for rate increases of about 60% and all the while cancelling the hell out of people. I'm not a bit sorry to see the crooks at Allstate and State Farm gone.
     
  9. DavidS
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    DavidS Anti-Tea Party Member

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    La Nina years are bad for Florida. REALLY bad.
     
  10. Andrew2382
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    Andrew2382 Gold Member

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    Thats fair.

    Yet I would say this in return...do you really think you should be paying 1500 bucks a year in south florida for 350,000 worth of coverage on your home...when you go to any other company and its 2,3,4 times the rate.

    However the State won't let us adjust the rate by raising it which would still be lower compared to the rest.

    Companies lost billions after 2005. Dozens of property carriers went bankrupt and out of business leaving millions uninsured because of the low premiums they were charging.

    Hurricane Andrew made everyone realize how expennsive and devasting a hurricane can be to a insurance company...however the 2005 season made it a reality.
     

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