Fair disbursements to claims, besides a quick turnover on policy claims was the name of the game for State Farm Florida following the destructive hurricanes of 2004 and 2005; which left Florida with boundless damages on the property front. But, incurring a monthly loss of over twenty million; State Farm Florida has to snatch at the strings of survival, even with the infusion of funds from its parent company to tide over the number of claims the company had to settle. With the exception of Allstate Floridian and Nationwide Florida, companies with problems of their very own; State Farm Florida with well over 700,000 home, property, boat and other correlated insurance policies in place, is one of the largest private insurance companies operating in Florida.
Smaller insurance companies find balmy weather
Many people saw red over the decision of Farm Florida to decamp from the state’s home and property insurance market. For most Florida residents and especially for those living in or near coastal areas; finding good home insurance deals has always been a problem. Together with State Farm Florida’s decision to vacate the home insurance market clubbed with the hurricane season having begun, agents are scrambling to fill the pending vacuum. Most agents are facing an uphill task finding suitable candidates to whom to offer policies, while individuals are struggling to locate agents willing to access and provide near ideal policies to cover their properties.
Exploring available options
Besides the state run Citizens Property Insurance Corporation, there seem to be few options in sight for those seeking insurance. It’s also well known that Citizens Property Insurance Corporation is seriously underfunded and has a massive deficit. Facing a possible hike in premium rates by turning to alternative and smaller insurance companies, it’s recognized that premiums charged by State Farm Florida, are actually amongst the lowest (being between 90% and 200% cheaper than many rivals). Whichever way you look at it State Farm Florida will cease to operate its property insurance in the state by 2012, either by failing as a company or by hiving off its entire bank of policies. To calve off policies though, the company needs to provide policy holders with a 90 day notice or non-renewal. A number of smaller companies though have barged into the vacuum left by the departure of the larger insurance companies since 2005, but most of these have not been tested for durability through disaster. The best route at this point would be for State Farm Florida policy holders not to hold back for the non-renewal notices, but to go ahead and locate the best insurance deal they can find.
Matching property insurance policies with requirement
The simple act of calling your local directory or yellow page service would get you the leads you’d be prospecting for. Augment reach, by collaborating with friends and relatives looking out for insurance. Forming a group to locate, negotiate and then to individually procure home insurance, would be one of the best ways to tackle replacing your current policy. Smaller local Florida insurance companies like American Strategic and Universal Property & Casualty are worth looking into; especially if they have a large network within your area.