Jacksonville Florida Homeowners Insurance News

The large homeowners insurance company, State Farm of Florida,  has just requested a 28 percent increase on homeowners insurance rates due to many sinkhole claims in the Sunshine State. This request comes as many Florida lawmakers are trying to fix the sinkhole issue occuring in the state.  There will be a legislative session which convenes March 8, 2011 to try and come up with a solution for the rising costs of homeowners insurance in Florida. 

Forida State Farm spokesperson Chris Neal recently said that the push for the rate request is the rise in the insurer’s non-catastrophe losses, which have increased by over 90 percent over the last few years. By far, he said, the majority of that increase is due to the rise in sinkhole losses. In 2007, the carrier paid out just $47 million in sinkhole claims, a figure that has increased steadily with the carrier paying out over $119 million in the first three quarters of 2010.

Read more today at:  http://www.insurancejournal.com/news/southeast/2011/02/01/182926.htm

The Florida department of financial services, (The state Office of Insurance Regulation) told Floridians  today that they are conditionally approving  the request to let State Farm insurance carrier leave the state.  They were told with specific purpose that the company may withdraw under some of the following conditions:

1.  State Farm must allow its agents and agencies to sell homeowners policies from other carriers

2.  State Farm may not place any of its policies the states high risk pool Citizens property Insurance Corp., the overburdened state-run carrier of last resort. (Which is overflowing with issues today)

What do you think about State Farm.  Are you a current policy holder with them?  We want feedback from Floridians and their current situations.  (Read More)

A Company officials say they are losing nearly $20 million a month. After being denied a 50 percent rate increase late last year, continuing to operate in Florida “would have resulted in insolvency,” said State Farm Florida CEO James Thompson.  Is this true?  Why do regulators allow homeowners companies to set up seperate LLC’s in Florida?  Don’t you think all of their companies should be under one umbrella?  Another way to work the system.  Read More Here…