Looks like in this case State Farm wants to insure itself!

I own a home on the gulf coast of Florida that I am attempting to sell because of a relocation to Maryland. Because of the insurance industry and their greed we are unable to sell our home which has been on the market for approx. a year. We purchased our home in 2002 and our homeowners insurance was $1200 annually. After the hurricanes, our premium increased to $2600 for 2005 and then increased again to $3362 for 2006. We have had lots of interested homebuyers go through our home but once they find out the cost of the insurance, they are not interested in paying those premiums. There is definitely an insurance crisis in Florida which no one is addressing. Citizens Insurance which is the insurer of last resort is mandated by the private insurers such as State Farm to always have the highest premiums. What about the obvious profits that these insurance companies have realized in the past few years? The real estate market in Florida has basically come to a standstill because of the greed of these insurance companies.

I have been in the insurance industry for over 18 years. I see the issue with State Farm being that a couple years ago...someone decided that they DID NOT NEED to purchase REINSURANCE in Mississippi. Therefore the insurance company "State Farm" is on 100% of the loss..If they had purchased Reinsurance then their maximum loss would have been around 1 Million instead of billions. Insurance 101-the insured/client transfers the risk to the insurance company for a premium. I don't think the insurance company should now be allowed to pull out of the state just because of this loss...Now the residence will be receiving non renewal notices and have to find another carrier to provide coverage. Supply and demand? Yes not only because of the hurrican but because there will be less companies providing this most important insurance coverage that homeowners will see a higher premium. This will trickle down to auto insurance, renters insurance and commercial business as well.

The insurance crisis on the Gulf coast has gotten out of control. We moved to Pensacola, Florida 2 years ago to be closer to my husband's family. Unfortunately, we faced a post-Ivan housing market of inflated prices. We finally purchased our home last year and spent thousands renovating our home. The insurance company threatened to cancel our coverage 3 months after we moved in because they said we needed a new roof. We took out a loan and complied even though it put us deeper into debt. My husband's paycheck and my part-time pay barely covered our mortgage payments and the other bills. 2 months ago we were informed by our insurance company that our premiums were doubling. Our mortgage payment was increased by $134.00. We just cannot absorb this additional payment and now are forced to sell our home and move back to western NY. We have 2 young children and will have to find an apartment in NY because we will not make enough profit on our home to pay for a down payment on another house (not to mention that we are in debt since moving down here). It is a sad situation and I'm sure it is happening throughout Florida, Alabama and Mississippi.

Sincerely,
Julie Sharp

Well it appears that by succesfully altering a policy that did not intend (nor collect premiums) to cover flood damage, the state of Mississippi is in deep trouble. It will be only a matter of time, before other companies smarten up and leave or suspend coverage in that litigious environment. HINT- Don't build homes in hurricane zones and don't INSURE those who are foolish enough to do so.

We own several apartment complexes in Houston, TX. Insurance rates for apartments in south Tx have sky rocketed since the storms of Katrina and Rita. We just renewed a policy for a 168 unit complex. Last year our policy was $36,000.00, our first quote this year was $85,000.00, we finally settled on a quote for $66,000.00 an 83% increase and this after a year with no storms. Texas is down to only one company that carries wind coverage all others have pulled out of the State so we have no where else to go and when the mortgage company requires wind coverage our hands are tied. We need some government requlation to stop this monopoly.

Like a good neighbor state farm is where?

I have had my auto insurance with State Farm since I was 16. I applied for life insurance with last month. My policy was denied because I wouldn't give them full access to my therapy records. All they needed was a summary of why I was going and how he is treating me. He could sign a paper, fill out a survey. That was not good enough they wanted the entire records, the personal conversations between my therapist and I. Both my therapist and I thought this was a hugh violataion of privacy and I refused to give them the records so they declined my policy. Funny thing I just got a letter from them stating I canceled the policy, I did not I just refused to give them the full records. I'm now debating if I should keep my auto and renters insurance with them or if I should start looking for new insurance. State Farm is out for themselves only!

I am constantly amazed at people . When you can't make sense of a situation, you jump on the bandwagon and bash a company with a reputation more solid than any I know. Just remember this: A Lack of planning and common sense on your part does not obligate State Farm or any other insurer to pay for losses that are not covered. You who continue to live on the coast and who insist on buying minimal coverage get no sympathy from me.

In the '80's I releived myself of the frustration from dealing with State Farm. The company got caught doing bad things to good people doing difficult times. Instead of owning up to its bad conduct, State Farm's behave as a spoil child. State Farm can't have its way, the company holds its head down and run away. The people in the State of Mississippi should be proud the company left. Companies whoes missions is to serve their customers with integrity, should be honored to do business in Mississippi.

When is the audit?

Politics and Insurance giants...see the similarities?

I live in Michigan and I hope my insurance rates aren't subsidizing dummies who choose to live in hurricane/flood prone areas. People who do choose to live in those hazard areas have my empathy but not my sympathy.

Duncan, you sound jealous. You are shivering in a state where the sun hardly ever shines. People in sunny states are happier than those in the cold industrial states. Michigan's economy is the worst in the nation. The state can't even figure out how to keep its legislature and schools open.

State Farm refused to renew our homeowners policy, here on the Texas Gulf Coast. Can I sue for deceptive trade practices?

Natural disasters happen anywhere. When Michigan gets a big freeze and leaves you in the lurch, I will be sure to have empathy but not sympathy for you. I hope my tax dollars aren't subsidizing detroit for the disaster in the American auto industry.

Come on, we're Americans, and we need to pull together rather than taking an attitude. If we all moved from the gulf coast, and the eastern seaboard (which is historically just as likely to get hurricanes) and get all of the earth-quake prone folks out of california and all of the people out of tornado alley, you would be complaining about there being too many people in Michigan.

State Farm is in the wrong. They have been under legal pressure to stop cancelling Florida policies, and so they have stopped. Instead, they are raising rates exponentially. My parents just received a renewal of a $4500 increase (from $2000 to $6500) for a 1700 sq. ft. house. Several churches have received cancellation notices. In fact, all of the Methodist churches in Alabama and North West Florida are being forced to drop their insurance and become self insured. Good riddance, self serving state farm. Like a good neighbor - blah!

I just noticed on the URL for this site that a staement in it said that State Farm insurance has stopped cancelling policies in Florida. Well, that is a fabricated LIE. I got my cancellation notice today. I have been a Faithful State Farm client for over 25 years, with, only one Hurricane claim. Well, It is not a reassuring thought that my insurance was caneelled to appease the Katrina losses in Louisiana and Mississippi. Good Luck to all of you.

PS: They had the guts to ask me to keep my vehicle insurance with them. Fat chance on that.