State Farm Drops Florida Homeowners Insurance — What To Do Now?

State Farm has announced plans to discontinue all of its homeowners insurance policies in the state of Florida. The company says the state’s rejection of its 47 percent rate hike proposal left it no choice but to back out of the market.

State Farm Insurance Drop: Who’s Affected

The State Farm Florida homeowners insurance decision still has to be reviewed before any change can take place. If approved, all Florida State Farm customers with homeowners insurance and renters insurance would be affected. Condo owners, personal liability, boat, personal articles, business property, and liability policies would also be discontinued. In all, about 1 million customers would lose their policies. Florida auto insurance and life insurance plans through State Farm would not be affected.

[Full list of impacted insurance lines (PDF)]

State Farm Shift: What’s Next

State Farm’s review will happen in 90 days. If the proposal is approved, the company would then have to give all customers a six-month notice before discontinuing plans. State Farm say it is “submitting a two-year plan that seeks to limit disruptions for customers, and if approved, will allow them time to find coverage with other insurers.”

Florida Governor Charlie Crist has already responded to the move, saying State Farm’s rates were already high and that “Floridians will be much better off without them.”

Crist suggested current State Farm property insurance customers visit the official state Web site, shopandcomparerates.com, to locate new coverage.