Florida homeowners may be second class citizens to State Farm Insurance Company. JusticeNewsFlash.com top news from West Palm Beach insurance litigation lawyers.
West Palm Beach, FL (JusticeNewsFlash.com)–A Florida state administrative law judge and the Florida State Insurance Commissioner, Kevin McCarty denied State Farm Insurance company an almost 50% rate hike to homeowners. On Tuesday, Reuters reported, Florida’s largest private property insurance company, State Farm Florida, who insures 1.2 million homeowners, condo owners, renters and boat owners, announced they would shutter up their property insurance business and move north.
State Farm Florida is a subsidiary of State Farm Mutual the national insurance giant. According to Wikipedia www.wikipedia.org, State Farm Insurance is a group of insurance and financial services companies founded in 1922 operating across America. State Farm has remained the largest automobile insurer in the United States continuously since 1942 and insures more cars and homes in the United States than any other insurer. This decision will affect more than 1,000,000 policyholders and is another major setback to one of the country’s highest foreclosure and unemployment rate states reported the New York Times.
Governor Charlie Crist has not appeared pleased with the recent news by State Farm to drop 1.2 million Floridians like a hot potato and leave property owners in the dust. State Farm says it will keep its automotive, health, and life insurance business operating and available to Floridians. State Farm employs approximately 5,000 people in Florida and another 5,300 contractors who sell State Farm exclusively in the state of Florida. State Farm executives are not commenting on how the company’s decision will effect nearly 10,300 employees in Florida.
State Farm says because of the risk of hurricanes they can no longer afford to stay operational in any areas of property and casualty insurance in the state of Florida. Floridians are wondering why a company who is bailing on honest paying property policyholders is allowed to continue to make money on honest paying auto policyholders in their states.
JusticeNewsFlash.com top news from West Palm Beach insurance litigation lawyers.