After failing to pull off an robbery in Florida, State Farm Insurance company has said it will no longer sell homeowners insurance policies in the state and it will slowly phase out all existing policies. Most people that I have heard including the governor of the state said the same thing, "Good Riddance!".
According to the St Petersburg Times, State Farm will drop 1.2 million policies over the next two years. This will affect house and condo owners, renters, coverage for personal liability, boats, personal property and business property and liability.
State Farm Florida president Jim Thompson said that even without any major hurricanes in the past 3 years, the Florida operation has been losing $20 million a month and was on pace to go insolvent by 2011. What?? $20 million a month??? Are you kidding me? Please show that to me on paper! What are they doing or paying out each month to cost that much money? If they operate like that they don't to even be in business.
Oh, I forgot to tell you what made them decide to cancel all future sales and current policies......they lost a recent legal battle with the state to hike its property insurance rates by an average of 47%!
Gov. Charlie Crist said the issue was State Farm's obstinacy in seeking rate hikes. "They probably charge the highest rates in the state, anyway. Floridians will be much better off without them", he said. Asked if State farm was "posturing", Crist replied: "I don't really know and I don't really care."
Oh, did I mention that State Farm is NOT dropping their auto policies and will continue to write new policies. That type of insurance is a gold mine for the company! The state tried to prevent this type of "cherry-picking" by attempting to create a new law to prevent companies from selling auto insurance while pulling back on property insurance. The Legislature's effort, however, was watered down and applies to few, if any, companies. What to do.....hummm.....
In State farm's case they are transferring all its auto policies to the parent company, State farm Mutual Automobile Insurance Company, which doesn't sell homeowners insurance in any state. How smart, huh? Just in case.
And there you have it. Another example of a private business out to get every penny it can regardless of the effects on his customers. People, we have got to start showing these companies that we are the ones that make their business. Without us as a customer there wouldn't be ANY Sate Farm business. So please, please, please take action. If you have a current homeowners policy with them you're going to have to find another company, likely the state ran Citizens Insurance company so get on it. Get a new policy as soon as you can. And here's the real kicker....if you have ANY other policy with State Farm, then please drop them and go with another agent. I can assure you that there are plenty of other auto insurance companies that would love to have your business and I can bet you that most will be cheaper if you search around. I can attest to Amica Automobile Insurance myself. I have had it for years and have yet to find a cheaper company with the same coverage! Check them out yourself!
Let's stand together on this and I'd love to see State Farm go out of business because of their greed!
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