Per the Wall Street Journal, State Farm is dropping all of its homeowner policies in the state of Florida. Citing the difficulty of remaining stable in an area that has seen serious hurricane damage in the past decade, State Farm had as many as 700,000 homeowners policies as of September 30th.
One of the most important things to note is State Farm’s choice to withdraw came after Florida regulators refused to accept State Farm’s request to rase rated by 47%. This rate rise would have significantly helped the company’s profits in the wake of a series of hurricane seasons that have driven more people for coverage.
In the wake of this withdrawal, it is important for policy holders in the Gulf Coast to remain vigilant on their payments and not accept rate increases blindly. State Farm’s actions in Florida could easily occur in states like Texas and Louisiana where hurricanes Gustav and Ike caused millions of dollars of damage to policy holder’s homes and property. Care must be taken to use an insurance provider that is proven and tested by previous disasters or widespread damage in order to guarantee that your policy will be handled properly.
If you feel your policy claim has not been handled properly, contact the Berniard Law Firm at 504-521-6000 and an attorney will discuss with you your best legal options.