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State Farm to Cut 50,000 Home Insurance Policies Along Florida Coast

State Farm Florida Insurance Company is dropping 50,000 coastal policies in Florida. Because the cuts are effective early next year on their renewal dates,...
July 25, 2007

State Farm Florida Insurance Company is dropping 50,000 coastal policies in Florida.  Because the cuts are effective early next year on their renewal dates, affected customers can continue their coverage through this year's hurricane season.  State Farm spokeswoman Michal Connolly said her company will provide at least 125 days written notice and that the first letters will start going out in September.  She added that while some customers will lose their wind coverage, they may be able to keep other parts of their policies.  With few options for coastal residents, many of the affected State Farm policyholders will wind up with the state-created property insurer of last resort, Citizens Property Insurance Corporation.

The cuts will affect policyholders who live within two miles of the coast, but some homeowners up to five miles away could have to find new coverage. Insurance Commissioner McCarty said the insurer's "actions are inconsistent with State Farm's previous statements outlining their underwriting intentions." The state Office of Insurance Regulation will review the company's filing to make sure it's consistent with Florida law.

State Farm to Drop 50,000 Policies (Fort Lauderdale Sun Sentinel 7/20/07)

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