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Florida Homeowners Look For State Farm Alternatives, For Insurance
Besides State Farm Florida Insurance Company, other companies like Allstate Floridian, Nationwide Insurance, Travelers, Metropolitan Property & Casualty, Hartford Insurance Company and even Hanover Insurance Company too have been reported to be cancelling policies; or, serving notices of non-renewal. Most of the cross national home and property insurance companies shed their policies and retired from Florida following their incurring massive losses after the 2002, 2004 and 2005 hurricane seasons.
Smaller insurance companies find balmy weather
State Farm Florida company President Jim Thompson in conjunction with other senior executives met with authorities following a recent 47% rate escalation sought by the company (which was turned down by the state) to discuss and disclose time bound plan to abort renewals of policies and to stop issuing policies over a two year period. State Governor Charlie Crist, made his indignation clear and pointed out that it was the onus of the corporate to behave in an honorable manner. Spokesperson, Chris Neal of State Farm Florida n the meantime clarified, that following publicly available communication from Florida Hurricane Catastrophe Fund stating that it would be unfit to meet reinsurance obligations to insurance companies in an efficient manner; and, without the rate hike, it would be challenging for State Farm Florida to maintain solvency. In this scenario, Florida state insurance regulators would have had to commence delinquency proceedings to liquidate the company by 2010. Such a scenario would hurt policy holders and stakeholder in a more injurious manner than simply curbing renewal of policies.
Seeking available options
Other than the state run Citizens Property Insurance Corporation, there seem to be limited options available for the current; and, soon to be insurance seekers in Florida. The state run corporation is heavily underfunded and has a particularly large deficit budget. Where premiums are concerned, there is also a worry about paying anywhere between 90% to 200% higher premiums than customers have been accustomed to paying State Farm Florida, which has one of the lowest premium rates around. Either way, by way of winding down or through insolvency, State Farm Florida would not be able to continue functioning. This being a definite, its customers would be well advised to begin looking out for alternate insurers through whom to insure their properties. Current procedure require an insurer to provide ninety days of advance notice to customers, cautioning them that their policies will not be renewed. A number of smaller companies, untested by the catastrophes of 2005, have entered the Florida market since, and would be gunning for all the new business. Current State Farm Florida should go ahead and launch their search for dependable home and property insurers.
Insurance companies operating only in Florida, find a ready market
The speedy way to locate a number of agents in your area would be to pick up your phone and call directory assistance for leads. Next, maximize your reach, by pooling in your research with that of friends and family who need to find insurance in a hurry. Forming a group would also help you negotiate for better deals for individual policies for each member of your group. Companies like American Strategic and Universal Property & Casualty have done well over the last few years and actually made a profit through the disasters of 2004 and 2005 - so consider these and other small companies.
About the Author We looked everywhere and got 1000's of quotes. The lowest price by far was from a company called Southern Insurance. They sell other types of insurance as well. Visit their site at homeowners insurance | Provided by organic seo
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