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Nice post. I couldn’t agree more. I get complaints every day from customers angry that their HO policy is getting nonrenewed by my only National company that still had an HO book in my agency. They want to move the auto to Geico/Progressive and they don’t even notice that these companies never took on a single risky HO policy. I always try to point that out — “at least this company insured your home for 5 years… how long has Progressive?”
Thanks to Kevin and Charlie.
This is exactly what has happened to all other major companies in FL. State Farm customers get a replacement policy before they are all gone!!!
Who should Floridians go to for a replacement policy? Are there any financially stable carriers writing property policies in Florida?
Mr. Independent you are wrong. We were able to get a pay raise by removing all the credits from our State Farm policies. My commission checks have gone through the roof. We also were able to write more policies through Citizens over the last couple of years by telling people that we would put them on a “waiting list” to get a State Farm policy.
don’t diss Crist… Charlie has made some pretty significant moves in a positive direction for that state of Florida. Point blank… hurricanes cause damage… a lot of damage… state farm is being dinged for being conservative. Much like those who build in Flood Zones, those in the general Hurricane laiden areas should realize hey… I’m living in a natural hazzard high risk area… duh, companies who’ve lost a lot of money aren’t going to renew and assume the risk all over again. Look at what stuff like that has done for NFIP!
Mr. Jimmy State Farm Agent: You should not worry about anything. You have made so much $$$ off your cliens. Most of the SF agents are not real agents (what I mean is that they really don’t work for their business). All of the SF agents I know all on the golf course, on their boat, or on vacation. Enjoy your money!!!
Who will write you depends on your location and the age of your home. Companies still writing with AM Best ratings are ASI and Florida Family.
State Farm prostituted their Fire & Casualty Company here in FL for OVER 30 YEARS just to get to the MUTUAL AUTO PREMIUM accounts… State Farm, in doing so, severely SUPPRESSED the Homeowners Insurance Market with totally inferior pricing to KEEP OUT COMPETITION. Now, Corporate is clomplaining that the Mutual Auto Company has to BAIL OUT State Farm Florida… That is IF they choose to? Are there any contractual guarantees????
Well, State Farm is getting EXACTLY what they asked for by COMMANDING THE HOMEOWNERS MARKET IN FLORIDA for OVER 30 YEARS. Obviously the LOSS LEADER approach or “Law of Large Numbers” doesn’t work in Florida for the Homeowners line!
UNDERWRITING is the KEY to success in Floidra ALONG WITH AS MANY COMPANIES AS THE STATE CAN GARNER to each take a reasonable piece of the Florida pie.
Ironically, now that it is so plainly evident that it is time for the Independent Agent’s to get their “slice of the homeowners insurance pie” away form State Farm… Many State Farm “captive” agents are setting up Independent Agencies “ON THE SIDE” to use the State Farm SIGN and draw in new customers then place them into their Independet Agency. I wonder if Corporate knows how EASY it would be for a State Farm “captive” to move their AUTO and LIFE book over to their Indepdent Agency if/when the “corproate” going gets tough”?? Can you immagine hom much more powerful a “captive agent” can be… if they have the ability to ROLL their “captive” book over to thier Independent Agency??? How corporate State Farm allows this is beyond me. Perhaps it is condoned? In that case, I want to RENT a State Farm SIGN and hang it in front of my Independent Agency, or at least next door to my Independent Agency, just like the “State Farm” agents are doing.
SIGN ME UP State Farm…
First Community Insurance Company is also an AM Best rated Company with adequate surplus.
Before you “sign up” with State Farm you may want to talke a spelling 101 class. Gramatical errors are a huge turn off for potential clients :)
I was going to use you as my proof reader, after I took your advice to “talke” a spelling 101 class…
How about YOU “TAKE” your own advice.
I read this 4 times and I’m convinced it’s the least articulate posting I’ve ever seen. What exactly are you saying? What positive moves has the Governor made?
I Apologize… I was referring to Mr/ Solvent’s first posting. Basically, I think it’s rediculous to blame government, induviduals and anyone besides nature for the hurricane issues that insurance companies are facing. The Earth is changing due to the fact that we are poor tenants… The insurance companies took a crappy risk when saying here’s insurance for hurricane or flood, etc. People are so tuned into what the “bottom dollar” is, be it revenue or paid out, that we forget to look at the actual risk.
Squir, where do you get your info about moves Crist has made. He stated when he got elected that he would correct the insurance market in Florida in two years. And I am here to tell you that Crist has single handedly run it into bankruptcy. Our insurance market is way worse off than before Crist made his ‘moves’ you are referring to.
Just goes to show you exactly how liberal Crist supporters really are. Why didn’t he jump ship to join the Democrats instead of being “independent?”
I am not aware of any “contractual” responsibility that State Farm Mutual Auto has to come to the aid of State Farm FLORIDA other than “explicit and implicit” support”, whatever Best thinks that means? I wouldn’t hang even a B- Negative rating on it… That, in it of itself, is a SHAME for the citizen’s of Florida, because… State Farm MUTUAL has been a HUGE FINANCIAL BENEFACTOR of State Farm’s TOTAL CAPITALIZATION/DOMINATION OF THE HOMEOWNERS market in Florida. For every HOMEOWNERS policy, there are at least TWO autos on average. State Farm MUTUAL AUTO would not have anywhere near the premium volume from Florida, if it were not for the homeowners book. State Farm Mutual AUTO BENEFITED from the Florida PROPERTY market, and SHOULD BE HELD RESPONSIBLE FOR THE CONSEQUENCES. To allow State Farm Mutual to EVADE financial responsibility for State Farm Florida’s PROPERTY exposure is akin to another BAILOUT OF BIG, SUPER BIG BUSINESS. Just the thing that Private Enterprising, “free market” CAPITALISTS DESPISE. If they despise it, THEN WHY DO THEY ARRANGE THEMSELVES TO TAKE ADVANTAGE OF IT AND ACCEPT IT WITH OPEN ARMS/”POCKETS”??? The height of HYPOCRISY!!!
Why dont you go a little further and ask Geico and Progressive to give State Farm some on their money since a lot of State Farm homeowner policy holders keep their auto ins with these two companies instead of giving it to State Farm. NO I dont work for SF but I do take their home business on a regular basis and their clients often have their auto with Geico and Prog who neither one put their butts on the line to write homeowners in Florida. That is my pet peeve, while the general public complains about SF/Nationwide/Allstate not being allowed to write autos if they dont offer homes, why do these two companies never come into the equation. Someone answer that million dollar question.
State Farm agents don’t work for a living? That’s news to me! I guess I’d better get out on the golf course more!I work damn hard for every piece of business I get!
I’ve got a lot of experience dealing with State Farm agents. The State Farm model is to work very hard for 5 or 6 years, hire some office girls, and hit the links. I know of very few agents that aren’t absentee agents.
Recent article states that the discounts given to the homeowners has hurt the A.M. Best rating–
2004 after hurricanes Genie and France destroyed our home– our roof was replaced, our roof then was reinspected by State Farm inspector and a discount was given since our new roof was up to code with extra reinforcement.
2010 State Farm contacts us and says the roof needed to be reinspected states the prior inspectors were fraudulently passing inspections– We received a notice recently that our inspection did not allow us the discount. Being a homeowner one assumes that after reading this recent article that there is some underhandedness going on. I honestly think the hirer powers beyond Christ needs to be contacted and aware of this scam to raise the A.M. Best rating. I intend to follow through.
State Farm Florida’s deterioration has been driven by a sharp decline in net premiums written due to policy non-renewals, wind mitigation discounts, reinsurance costs and inadequate rates. In addition, due to its geographic business concentration, the company¹s gross probable maximum loss from a 100-year hurricane is well in excess of its surplus, according to A.M. Best.