State Farm wants to raise average rates by 28 percent

[The Straight Story]

State Farm wants to raise average rates by 28 percent

State Farm Florida Insurance, the state's largest private property insurer, wants to raise rates by a statewide average of 28 percent.

Although Florida has dodged a direct hit by hurricanes the past five years, the company says the increase is needed to cover rising losses for claims unrelated to storms such as sinkholes. The increase comes after the company received approval in 2009 to raise average statewide rates by 28 percent and approval in November to raise them by 6.6 percent.

State Farm had 678,849 residential property insurance policies in the state as of late last year, including 128,506 in Broward, Palm Beach and Miami-Dade counties and 175,084 in the Orlando area.

The Office of Insurance Regulation will review the request at a hearing on Feb. 15. An actuary from the office wrote in an e-mail late Friday that it appears the proposal is driven by higher claims costs and a higher "profit and contingency" factor, which is, in part, for emergencies or unforeseen events. Just because the request was filed "does not necessarily mean the Office will approve it," he wrote.

http://www.orlandosentinel.com/news/local/state/fl-state-farm-rate-increase-20110128,0,5489024.story

[dkf]

1. Hawaii just used up our hurricane fund to plug our budget

We accumulated those funds when the insurance companies left after the last bad hurricane and we had to create our own self insured fund.

I am hoping we have not jinxed ourselves.

[glowing]

2. A lot of those sinkholes happened when the cold snap occurred and

farmers pumped out water to protect the fruit... I beleive the state has a direct responsibility to the homeowners they harmed by allowing the aquifers to run so low.. AND that year, it was nearly drought like conditions... No rain for nearly 2 or 3 months.

[Mojorabbit]

3. Hell, they already

canceled coverage for a boatload of people here as it is.

[madrchsod]

4. 351 million in three yrs! do`t blame state farm.

sink holes are not a natural disaster in florida. they are caused by growers and politics.

[customerserviceguy]

5. Rates have already been going up in Florida for years

My lady insured her vacation condo in FL for many years, then they jacked premiums through the roof. She did find another insurer, but if they follow State Farm on this, she's considering the possibility of going without the homeowner's insurance, and just taking her chances. The condo's dropped in value dramatically, it doesn't make sense to shell out rapidly increasing sums for something that's depreciating in price, for a risk that has a low chance of occurence.

[Ichingcarpenter]

6. Good..... Insurance companies don't make enough

and think of all the things that THEY PRODUCE.

[Joanne98]

7. Insurance companies are completely out of control!

[OwnedByFerrets]

8. I just had my home owners insurance increase by 1000 dollars even though I dont live anywhere close

to the beach. Alfa wont cover wind or hail damage any longer, so I had to get coverage elsewhere. Why must I have wind and hail coverage if I dont live next to the gulf? My mortage company says so. Fuckers have us by the throat and there is little to be done about it.

[madfloridian]

9. Ours went up $50 a month this year already.

[Fuddnik]

10. They jacked mine up 48% last year by eliminating all discounts.

Then they canceled me effective next month.

Now, I've got to go through Citizens. Which raised it another 80%. But, I'm dropping sinkhole coverage and keeping the rest for close to the same price.

And State Farm wanted to write the policy (collect the commission) on the Citizens policy. I don't think so. And they also lost two cars, a motorcycle, and flood insurance.

Fuck 'em!