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Economy

State Farm wants to dump home insurance in Florida

Beatrice Garcia - Miami Herald

January 27, 2009 04:47 PM

Saying its finances are weakened, State Farm's Florida unit wants to get out of the business of property insurance in the state.

The company, Florida's largest private insurer of homes and condos with 1.2 million policies, wants to keep only auto insurance, it said in a statement. Other State Farm units would still sell life, health and other financial services, it said in a statement.

Under State Farm's proposal, it would phase out of the property insurance business over two years, giving existing customers time to find new coverage.

If State Farm's plan is approved by state insurance regulators, that means it will no longer write the full range of property policies, including homeowners, condo, renters, boaters, mobile home, business property, commercial liability and commercial marine.

State Farm cited its ``substantially weakened financial position, directly related to its inability to obtain regulatory approval of what it believes to be adequate property insurance rates.''

Read the complete story at the miamiherald.com

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