State Farm Insurance has done a lot of threatening lately. The insurance giant wants to leave Florida because of the downside of having to pay claims in case there is another hurricane this season.
State Farm proposed a 47 percent statewide rate increase in property insurance to stay in the state, according to an account. Last week the 1st District Court of Appeal in Tallahassee upheld a decision last December to reject that outrageous hike, joining the state Office of Insurance Regulation.
State Farm had already been granted a 52 percent increase in 2006. Right after that State Farm said it would take its business out of the Florida property insurance market, even though they got the rate increase. That would mean one million hurricane policies would not be written by the insurance giant.
State Farm would like the state-run insurer, Citizens, to take over the policies. An appeal is set to be heard in October as to what terms State Farm can withdraw from Florida. Negotiations are still possible and probably the best outcome for consumers. Let State Farm hike rates slightly in exchange for continuing to write hurricane coverage.
Whether State Farm stays or goes, we better pray there is no hurricane. Half of Florida’s policies are insured by the state, which could little afford a big payout in the state most likely to be hit by a hurricane. October, the end of hurricane season, can’t get here soon enough.
At Farah and Farah, our Florida hurricane insurance dispute attorneys have the experience and knowledge necessary to pursue insurance companies when they neglect to fulfill their legal responsibilities. For more information on how to receive compensation for damages that your policy said would be covered and now are being denied, contact Farah and Farah today for a free consultation.