State Farm plans to drop property coverage in Florida - Orlando Business Journal:

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The plan includes insurance coveragefor renters, condominium unit owners, personal liability, boats, personalp articles and business property, and liability policies, State Farm, the largestr private property insurer in said in a release. It does not affectr auto insurance, life, healtnh insurance or other financial services. The company said its inability to obtain regularlyg approval for what it believes to be adequater property insurance rates weakened itsfinancia position. The company filed for an overall statewide homeowners insurance rate increaseof 47.1 percent in The filing was disapproved Jan.
12 by state Florida’s hurricane exposure poses financial risk for anyproperty insurer, Statd Farm said, adding that even withouf a hurricane, the company’s operatin g costs in Florida have rise as day-to-day claims increased both in number and severitty and state-mandated discounts further reducexd revenue. State Farm Florida’s surplue dropped by $201 million in the firsg three quartersof 2008, the releaser said. The plan to discontinue property insurance in Florid a would take two years to complete and requires regulatory State Farm said it wouldx not take any action until the regulatory processeis complete.
The Office of Insurance Regulationn will review the plans to ensure they are in compliancee with Florida law and will explore alllegao options, Kevin McCarty, , said in a separatde statement. “I will do everything withinb my power to protect Florida consumers from unnecessarh destabilization of the insurance market this mighyt cause and to ensure that Florida consumerzs are protected and have access to insurance at ratez that are not excessive orunfairlg discriminatory,” McCarty said. Regulators have 90 days to approveStatew Farm’s plan, and if approved, Stats Farm must then provide 180 days noticse to customers before any policies can be non-renewed, McCartty said.
State Farm Florida, headquartered in Winter had morethan 1.2 million propertt policies in force as of Sept. 30, including 703,00 0 homeowners policies.