State Farm pulls out of Florida

[Andrew2382]

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

 

[Ravi]

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

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.

 

[DavidS]

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.

 

[Andrew2382]

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

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.

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.

 

[WillowTree]

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.

 

[WillowTree]

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

 

[Andrew2382]

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.

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

 

[WillowTree]

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

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.

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.

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.

 

[DavidS]

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.

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

La Nina years are bad for Florida. REALLY bad.

 

[Andrew2382]

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.

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.

 

[Andrew2382]

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.

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.

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.

Willow...they were cancelling because they couldn't get rate increases...

if you ran these companies would you keep the policies on your book, knowing that it could bankrupt you?

 

[WillowTree]

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.

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.

Did State Farm and Allstate post a negative balance sheet? Or were they making money hand over fist? They collected billions and billions and billions before Andrew hit. And then 2005. Sure they had it rough, but that's what insurance is. It's a gamble that more will go right than will go wrong. An insurance company becomes a preadator when all they want is yer money and none of the responsibility they contracted for.

 

[WillowTree]

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.

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.

Willow...they were cancelling because they couldn't get rate increases...

if you ran these companies would you keep the policies on your book, knowing that it could bankrupt you?

Andrew, I don't think they came anywhere near bankruptcy. They cancelled insurance on one of my homes, Just arbitrairly. No rhyme or reason. I own two, Within a block of each other. So, since I owe no mortgage I just said hell i will take my chances. I don't waste money on insurance premimums anymore.

 

[Andrew2382]

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.

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.

Did State Farm and Allstate post a negative balance sheet? Or were they making money hand over fist? They collected billions and billions and billions before Andrew hit. And then 2005. Sure they had it rough, but that's what insurance is. It's a gamble that more will go right than will go wrong. An insurance company becomes a preadator when all they want is yer money and none of the responsibility they contracted for.

It's not the balance sheet they look at. They may be in the green there...even tho in 2005 they were deep in the red.

However they have to look at what risks they currently have and what would the payout be if there were total losses. They need to be able to have those funds on account if something like that happened.

With the premiums they are charging they don't have the money to pay the claims.

In Andrew, Insurance companies got wiped out because people were paying 400 bucks a year for a condo policy and 1200 for a homeowners

In 2005 companies got wiped out because people were paying 1800 for homeowners and 1000 for a condo policy.

When you go outside the market and shop, or go to Citizens and a Homeowners policy (like mine for example) is $5200 a year.

Also the majority of the customers with allstate and state farm have been there for years if not decades and are grandfathered into old rate regulations and the company can't adjust their rates to adequaltely meet the need of today's risk.

THats the problem.

You say get the fuck out, but do you really think these people want to be with Citizens now?

Also when I say bankrupt, you ahve to look at the company.

Allstate and State Farm are their own seperate company

Allstate floridian and State Farm Florida...its different then the ref State Farm and Allstate..they work under their umbrella but have their own book and reserve.

State Farm florida had to borrow 900 million from State Farm Mutual after 2005 to pay claims.

 

[Andrew2382]

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.

Willow...they were cancelling because they couldn't get rate increases...

if you ran these companies would you keep the policies on your book, knowing that it could bankrupt you?

Andrew, I don't think they came anywhere near bankruptcy. They cancelled insurance on one of my homes, Just arbitrairly. No rhyme or reason. I own two, Within a block of each other. So, since I owe no mortgage I just said hell i will take my chances. I don't waste money on insurance premimums anymore.

god bless..if you can afford go for it.

However as an agent I would give you this piece of advise

An HO-3 policy (Homeowners policy) is more then just covering your home...it's also $300,000 in liability in the case you get sued.

 

[WillowTree]

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.

Did State Farm and Allstate post a negative balance sheet? Or were they making money hand over fist? They collected billions and billions and billions before Andrew hit. And then 2005. Sure they had it rough, but that's what insurance is. It's a gamble that more will go right than will go wrong. An insurance company becomes a preadator when all they want is yer money and none of the responsibility they contracted for.

It's not the balance sheet they look at. They may be in the green there...even tho in 2005 they were deep in the red.

However they have to look at what risks they currently have and what would the payout be if there were total losses. They need to be able to have those funds on account if something like that happened.

With the premiums they are charging they don't have the money to pay the claims.

In Andrew, Insurance companies got wiped out because people were paying 400 bucks a year for a condo policy and 1200 for a homeowners

In 2005 companies got wiped out because people were paying 1800 for homeowners and 1000 for a condo policy.

When you go outside the market and shop, or go to Citizens and a Homeowners policy (like mine for example) is $5200 a year.

Also the majority of the customers with allstate and state farm have been there for years if not decades and are grandfathered into old rate regulations and the company can't adjust their rates to adequaltely meet the need of today's risk.

THats the problem.

You say get the fuck out, but do you really think these people want to be with Citizens now?

Also when I say bankrupt, you ahve to look at the company.

Allstate and State Farm are their own seperate company

Allstate floridian and State Farm Florida...its different then the ref State Farm and Allstate..they work under their umbrella but have their own book and reserve.

State Farm florida had to borrow 900 million from State Farm Mutual after 2005 to pay claims.

Yes, but you have to look at all the years they collected these fees that were just pure profit.

I have flood insurance. that's it. I will insure the rest of it myself.

 

[Andrew2382]

Did State Farm and Allstate post a negative balance sheet? Or were they making money hand over fist? They collected billions and billions and billions before Andrew hit. And then 2005. Sure they had it rough, but that's what insurance is. It's a gamble that more will go right than will go wrong. An insurance company becomes a preadator when all they want is yer money and none of the responsibility they contracted for.

It's not the balance sheet they look at. They may be in the green there...even tho in 2005 they were deep in the red.

However they have to look at what risks they currently have and what would the payout be if there were total losses. They need to be able to have those funds on account if something like that happened.

With the premiums they are charging they don't have the money to pay the claims.

In Andrew, Insurance companies got wiped out because people were paying 400 bucks a year for a condo policy and 1200 for a homeowners

In 2005 companies got wiped out because people were paying 1800 for homeowners and 1000 for a condo policy.

When you go outside the market and shop, or go to Citizens and a Homeowners policy (like mine for example) is $5200 a year.

Also the majority of the customers with allstate and state farm have been there for years if not decades and are grandfathered into old rate regulations and the company can't adjust their rates to adequaltely meet the need of today's risk.

THats the problem.

You say get the fuck out, but do you really think these people want to be with Citizens now?

Also when I say bankrupt, you ahve to look at the company.

Allstate and State Farm are their own seperate company

Allstate floridian and State Farm Florida...its different then the ref State Farm and Allstate..they work under their umbrella but have their own book and reserve.

State Farm florida had to borrow 900 million from State Farm Mutual after 2005 to pay claims.

Yes, but you have to look at all the years they collected these fees that were just pure profit.

I have flood insurance. that's it. I will insure the rest of it myself.

you're right

but you have to remember Willow

All those years they were making profits...they were charging shit premiums

So when you charge 25 years of insurance and still paying claims ona regaular level...and the premiums are 400 bucks for a condo policy...1400 bucks for a homeowners policy...

and then on eyear you get hit for 2 billion in damages...all those years you made profit are gone in one storm.

Thats essentially what happened

 

[xsited1]

I'm sure Obama has a big-government solution to solve this problem.

 

[Andrew2382]

http://www.helpfloridahomeowners.or...es/25/Loss Experience Fact Sheet. 5-12-06.pdf

check out that site

in 2005 in Florida alone over 9 billion dollars was paid out

in 2004- Insurance paid out 20.9 billion to settle 1.66 million claims for the 04 season

Between 04 and 05 in florida alone over 30 billion dollars was paid out spread over 2.8 million claims

Florida insurance council calculated that insurance companies paid more then 63 million PER DAY during the 04 and 05 season


Allstate incurred 1.8 billion in losses as a result of the seven named storms from 04-05 erasing more then A DECADE of profits.


it's insane

 

[Ravi]

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.

No, he's being incredibly unfair to millions of Floridians that have State Farm auto or health insurance. They'd have to give it up and find someone else to insure them through no fault of their own.