Some Florida State Farm policyholders are about to get bad news as the insurance giant begins to send out notices as of February 1, 2010 that their polices will not be renewed. A portion of the estimated 810,000 residential policyholders is expected to be affected by this corporate decision.
According to State Farm spokesperson Chris Neal, policies with an August 1st renewal date are the first to be affected. The decision could affect approximately 125,000 policy holders. This decision stems from an agreement reached between State Farm and the state Office of Insurance Regulation.
State Farm has notified the state Office of Insurance Regulation in writing that it plans to discontinue doing business in Florida and that it intends to be insolvent by the end of 2011. The bad news for policyholders, besides the fact that their policy may be canceled, is that State Farm has the authority to issue rate increases by as much as 14.8% for homeowners and condominium unit polices.
However, there is some good news. The insurance company is permitting agents to place affected policies with other insurance companies not affiliated with State Farm.
If you or someone you know currently has a residential insurance policy with State Farm, you should contact your insurance agent to determine if your policy is going to be affected.
Our law firm can help you if you are facing a Florida homeowner's insurance dispute. Contact our office today for more information.