State Farm Florida Will Not Renew 10,000 Homeowners Policies
State Farm announced it will not renew 10,000 homeowners insurance policies in Florida. The insurance company also announced it will stop writing commercial insurance for churches, apartments and contractors in the state.
State Farm Reduces Business
State Farm Florida Insurance Co. said that it plans to stop writing commercial insurance for churches, apartments and contractors in the state, as well as not renew 10,000 homeowners policies, in its effort to reduce the size of its business.
Its main goal has been to exit a variety of commercial lines, but in its effort to downsize, has chosen to eliminate some of its home insurance policies as well.
Overall, the company says its main interest is serving the homeowners market in the state. As for why certain policies were chosen for non-renewal, the company said its main objective was to manage exposure, which may be better accomplished through downsizing its market a bit.
Homeowners Receive Non-Renewal Notices on Sept. 1
Florida state law requires insurers to give policyholders 120 days notice to allow them time to find a new insurance company. The Florida subsidiary of State Farm Group said it has already begun sending out notices to the selected policyholders, informing them that it will not renew select their insurance policies. The first notices went out on Sept. 1.
The choice to discontinue the policies is not expected to hurt State Farm’s business as it is currently the second-largest homeowners insurer in the state, according to Best Link, which provides online access to A.M. Best’s database of insurance information.
As for homeowners who will remain insured by the company, they may be in for a premium increase. While State Farm did not receive the 28% increase in rates it requested at the beginning of the year, Florida regulators approved a statewide average 18.8-percent increase for homes insured by company.