State Farm’s property insurance division has been threatening to leave the state and homeowners without options, while leaving the more lucrative auto insurance business in the state. Now, according to an article, Florida’s Insurance Commission says State Farm may not leave Florida. Commissioner Kevin McCarty said Thursday it was his “gut feeling” even though the insurance giant was not allowed to raise its rates by up to 67 percent last January by an administrative law judge.
This news leaves 1.2 million Floridians with a huge unanswered question – where will they turn? The more insurance options there are to choose from, the better competitive pricing options one generally has. Gov. Charlie Crist was considering allowing a property insurance bill to become law which would have allowed property insurers to charge anything they want to insurer properties against hurricanes, but last month he vetoed the bill, citing the new smaller insurance companies that have come in to assume about 400,000 homeowner policies. State Farm is pinning its hopes on an override of the veto, which would have to be done in a special session of the state legislature.
Without that, State Farm says it plans to leave the property insurance business in Florida within two years. Expect others to follow suit or to reduce their exposure for coastal properties. McCarty is looking to a national catastrophic fund that would pool money from many states to help property owners along the coast recover property damage when a hurricane or natural disaster strikes. In the meantime, let’s cross our fingers – hurricane season ends in October.
If you have any questions regarding a hurricane insurance dispute in Florida, contact the skilled Florida personal injury attorneys at Farah and Farah. It is vital for you to know your rights when pursuing an insurance claim after something as devastating as a hurricane. Call 1-800-533-3555 today.