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AAA Update on the
Florida Home Insurance Situation
A timeline of events...
July 2008 - August 2009
In July 2008, State Farm Florida (State Farm ®) filed to increase homeowner insurance rates by 47%. The petition was denied by the Florida Office of Insurance Regulation (OIR). In response to the denial, State Farm ® announced in January 2009 that it would file a plan to withdraw from the Florida homeowner market over a two year period. The OIR provided conditional approval of the plan, requiring State Farm ® to meet certain conditions as part of the withdrawal.
In April 2009, the Florida Legislature passed the Insurance Reform Bill (House Bill 1171) which allows insurance companies meeting certain criteria to charge higher rates for homeowners insurance without state regulatory approval . This bill was vetoed by Governor Charlie Crist in June 2009.
In July/August 2009, State Farm ® filed for, and received approval, to eliminate certain discounts for homeowners insurance. This will, in effect, result in an average increase of 28% for existing State Farm ® policy holders.
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September 2009 and forward
State Farm® property customers start to receive renewal statements on policies effective December 1, 2009 and subsequent which reflect the removal of certain policyholder discounts, which amount to a 28% rate increase.
December 17, 2009
A hearing in front of a State Administrative Judge was scheduled to begin October 12th but has been postponed
until December 17th. The purpose of the hearing is to establish whether or not State Farm ® can proceed with its
plan of unconditional withdrawal from the Florida Homeowners Insurance market.
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State Farm® has received approval to eliminate certain homeowners discounts in Florida.
To calculate the possible impact, please enter your current State Farm® premium.
Auto Club South is proud to serve AAA Members and residents of Florida, Georgia, Middle & West Tennessee, and Puerto Rico. 