Like a good neighbor

[MichaelHarris]

State Farm won't be there.

State Farm to drop more coastal policies

State Farm Insurance will drop several thousand homeowners and businesses in Galveston County next year when it stops insuring property on islands and near coastal waters, the company said Thursday.

Texas’ largest insurer also said it would drop policies on more than 20 apartment complexes and condominiums in Galveston.

State Farm will not renew residential and commercial policies on properties within 2,500 feet of coastal waters or bays, on barrier islands such as Galveston or a peninsula such as Bolivar, the company said....In July, Insurance Commissioner Mike Geeslin denied a request that would have meant average premium increases of 57 percent for Galveston County policyholders.
http://news.galvestondailynews.com/story.lasso?ewcd=241483c4cf9aacf2

I lived along the Texas Coast most of my life, went through many storms but nothing like the storm the homeowners of Galveston County are about to go through. Living their life on the ups and downs of the oil industry, scratching a living as shrimpers in and around the coasts many bays. Built their homes on the promise of insurance and low taxes. Invested in communities to raise families. Union families built the Texas coast, now State Farm say's, "I can't be your neighbor anymore, you're not profitable".

Lets send State Farm a message, lets tell them we no longer want you to protect American families.

Michael Harris

[aquart]

1. So what are their other revenue streams?

[liberaldemocrat7]

2. They sell automobile and homeowners insurance in NY

Recently they have run alot of ads here in NY probably to cover up the news about they're not paying claims down in the gulf coast area.

I use GEICO because they insure my electric motorcycle. 80 bucks a year that appears it!

[Deja Q]

3. Why should premiums increase?

The point OF insurance is giving a company money that's going to assist in rebuilding costs in the event of an accident.

ALL companies have to take profit hits from time to time.

Yet when an insurance company, a company that by definition takes money in what's little more than a "legalized confidence scheme", has to pony up, that's when they decide to raise the premium rates by double-digits. To "recoup losses". What losses? The company is merely paying back the service they are providing.

What's the point of having insurance if nobody uses it? Why give out free money to a bunch of lazy do-nothings? That's stupid.

[Craftsman]

4. I live in Pasadena TX and am wathcing this closely

I have state farms and my rates have gone up some, but I am now just waiting for the shoe to drop.

[newyawker99]

5. Hi Craftsman!!

Welcome to DU!! :toast:

[ProgressiveEconomist]

6. You mean "Snake Farm"