"Like a Good Neighbor" - State Farm to Stop Insuring Private Property in Florida

I just received an alert from fellow appraiser Alvah Beander that State Farm is pulling out of the Florida residential property market. A Market Watch report states that State Farm, the nations largest private property insurer will no longer insure residential property in Florida. The withdrawal not only includes real estate, but also personal property. The decision came after the state regulators refused to allow State Farm to raise insurance rates by 41.7%.

The Market Watch reports states, State Farm has been the largest private property insurer in Florida, so when it leaves, thousands of homeowners and other policyholders in the state will have to look for coverage elsewhere.

The withdrawal plan includes coverage for homeowners, renters, condominium unit owners, personal liability, boats, personal articles, and business property and liability policies. More than 700,000 homeowners will be affected, State Farm said.

CNN reports that State Farm has lost $1.21 for every dollar collected in premiums on Florida property. CNN states the announcement is the first step of a two year process to leave the Florida property market.

Perhaps there is business for appraisers as potential clients need to update their personal property insurance records as they move to a new and different insurer. The report stated State Farm plans to continue selling Auto, life and health insurance in Florida.

To read the Market Watch report, click HERE. To read the CNN report, click HERE.