State Farm cancels thousands in Fla.

[Amerigo Vespucci]

Source: MSNBC

The largest homeowners insurer in Florida is canceling the policies of 125,000 of its most vulnerable customers beginning Aug. 1, halfway through the 2010 hurricane season.

The company, State Farm Florida, began sending out cancellation notices this week to nearly a fifth of its 714,000 customers, most of them in the state’s hurricane-prone coastal regions.

A spokesman for State Farm said the decision was the direct result of its failure to win a 47.1 percent rate increase from state regulators.
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State Farm stopped writing new policies and sought the increase a year ago, saying severe losses from a series of devastating hurricanes in recent years had rendered its business model unworkable. It said that without the large increase, it would be insolvent by the end of 2011.

Read more: http://www.msnbc.msn.com/id/35220269/ns/business-personal_finance/

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A seniors center in Davie, Fla., was heavily damaged by Hurricane Wilma, which caused more than $20 billion in Florida in October 2005.

[boppers]

1. Insurers see the numbers, and science...

Odd that their paid-for advocates aren't making more noise about climate change destroying their business models.

[No Elephants]

2. The Florida coast has been pushed back over time, shrinking the state.

[flyarm]

4. well I live directly on the Gulf and they added a ton of beach where I am 2 years ago

We now have a very deep beach..i can't tell you the distance ( i am not good judging that) but it more than tripled our beach ..it is now a long walk to get to the water!!

[sce56]

3. Does SF know something the common folk don't?

Looking at a bad Hurricane season coming soon?

[Divine Discontent]

5. it is accessible info that they predict a worse hurricane season this year, yes.

it is seen as "above average" and a 64% of a Major hurricane hitting the US. This is searchable data looking at google '2010 hurricane season'.

so I'd have to agree with you, that they're doing this for preventative costs.

[RantinRavin]

11. About the same forecast as they had for 2009

And that turned out to be completely wrong.

[Divine Discontent]

12. that's what a friend just said, 'man they botched up last years and kept adjusting it down'

[Dappleganger]

19. It sure did!

Our kids complained because of the boring hurricane season, but we had fun eating up the food supplies. :D

[tavalon]

6. They know what we all should know by now

The weather is just going to get worse and the coastal areas will take a huge hit. As well, as the ice melts, the oceans will rise and again, the coastal areas will take the greatest hits.

[DemoTex]

7. If other insurers follow suit, the great state of FLA might have to socialize homeowners' insurance!

Bwaa haa haa haa!

[thunder rising]

8. Why just Florida? Why not TX, LA, MS as well?

[JCMach1]

9. Total BS from State Farm... They are simply pushing a windfall (pardon the pun)

from the situation.

These increases would have included high and dry counties as well in the state.

The Democratic CFO simply wouldn't allow the price gouging, so they are taking their ball and going home.

Fuck State Farm!!!

[era veteran]

10. I live in Kentucky and got canceled after Hugo

They got rid of policies on lots of people then. I complained to the state commissioner of insurance but he was in their back pocket. Like a good neighbor state farm is there is a bullshit lie. Fuck state farm assholes.

[Vinca]

13. Hey, hey, hey - you can't pay claims and buy the CEO a yacht, too.

Who do corporations think they are anyway? Oops - I forgot - our bought and paid for government.

[Robb]

14. SF is a for-profit company.

...They're not the Red Cross. Why are people so surprised when they look at profits above all else?

I agree with upthread comments, this is another industry that should be state-run.

[jobwithout]

17. State Farm is not a for profit company.

They are a mutual company that opertates for the sole benefit of their policy holders. Any money that they bring in that is above and beyond what it costs to operate the business goes back to the policy holders.

[WriteDown]

18. Excellent point.. And why should other policy holders subsidize....

properties in places like Naples? This makes perfect sense.

[Robb]

22. CEO is paid more than $9 million each year.

13 times more than, say, the head of the Red Cross. So argue semantics if you want, yes, they're a mutual company. :eyes:

[joeglow3]

23. Thank you for pointing this out

I was going to myself. I get my check from them every year for any profits. Thus, I have a harder time than usual claiming this is anything other than a necessary move.

[mulsh]

15. With unscrtupulous home owners having huricanes what's a

poor insurance company to do? A friend who was in the industry once told me with a straight face that his insurance co. ran on "less than 1% profit".

[WriteDown]

16. Good for them. If you're going to live on the beach then you assume the risk....

They can't charge enough to cover their losses when the inevitable disaster hits.

[Xolodno]

20. Its only going to get worse...

No company so much wants to even touch Florida. Insurance company I work for wants to grow...we could easily hit our numbers if we opened up in Florida...and just as easily be insolvent the next year. Were pulling back heavily in Alabama and Texas. Flat out not accepting any more policies in high risk areas and raising the rates on the ones we do have.

Want to live in Florida? Make sure your house is built like a castle.

[Gormy Cuss]

21. Like a good neighbor, State Farm is

closing the blinds, unplugging the phone, and ignoring the doorbell.

[unabelladonna]

24. more blackmail

i can't believe how brazen they are.