State Farm Florida Frequently Asked Questions

As of 3/10/2009:

State Farm Florida Insurance Company has filed a petition for a hearing to appeal the Office of Insurance Regulation’s Withdrawal Plan Order. Following are answers to questions you may have:

What does this mean to me, as I now have a property policy with State Farm Florida?

The appeal shouldn't have any impact on your current policy, at this time. State Farm will not begin their withdrawal until an agreement has been reached.

What happens now that State Farm Florida has filed an appeal?

This process can go back and forth between the Office of Insurance Regulation (OIR) and State Farm Florida for a period of time. Once the appeal is filed with the Division of Administrative Hearings, it will be at least 30-45 days before we know the outcome.

Does this extend the time for State Farm Florida to issue non-renewals?

It could extend the period of time before State Farm Florida begins the withdrawal process. In the long run, this could extend the non-renewal date of your policy, depending on how long the appeal process takes, and your policy renewal date.

What is State Farm challenging in the Order?

State Farm is challenging the following:

The fact that the Order requires the insurer to surrender their Certificate of Authority, which they feel may make it harder to purchase re-insurance. They do not feel the OIR has the authority to prevent their agents from placing a non-renewed State Farm Florida policy with Citizens Property Insurance Corporation. Also, they do not feel the OIR has authority over their contracts with the agents by forcing them to allow their agents to write policies with other companies in the voluntary market.

When will State Farm Florida non-renew my homeowners policy?

The Office of Insurance Regulation has approved State Farm Florida Insurance Company’s withdrawal plan with certain conditions. State Farm will begin a two-year process of non-renewing policyholders. State Farm will give all of their insureds at least 180 days advance notice.

I read that State Farm had to surrender its license within 30 days. Does this mean my policy will be canceled in the next 30 days?

No, this means that State Farm Florida Insurance Company cannot write any new insurance policies. However, they will continue to service their existing policies until their non-renewal date.

Are all policyholders going to be non-renewed at the same time?

No. State Farm Florida plans to non-renew its business systematically over the next two years. A policy can only be non-renewed at the end of the policy term. Most policies are for a 12-month term. For example, if your policy starts on April 15, 2009, it would expire on April 14, 2010. At least 180 days before April 14, 2010, State Farm would have to notify you of its intent to non-renew your policy.

How can I find out when my policy is to be non-renewed?

The best way to determine when your coverage might end is to contact your State Farm agent.

Will customers who have both auto and homeowner coverage with the same State Farm agent, and therefore get a discount on their auto premium, lose their discount?

Once your State Farm Florida homeowners policy ends, there is a very good chance this discount will end. However, State Farm Florida’s withdrawal plan has not yet been approved by the Office, so the impact on your discounts is unknown. It is possible that State Farm Florida could modify its auto rates to address the loss of the discount or that the Legislature could change the law regarding these discounts.

If I receive an offer of coverage from a new insurance company before my nonrenewal date, am I required to take the offer?

No, the Office of Insurance Regulation will be working with State Farm Florida Insurance Company to identify other insurers willing to write replacement policies. However, you will not be required to accept the offers from any particular company. Florida has nearly 30 new private companies that are eager to grow their business and you may receive offers from more than one of them.

What is the best way I can find another company to insure me?

There are many ways to secure other insurance. You can learn more about homeowners insurance and compare property insurance companies by size and number of complaints at http://www.myfloridacfo.com/Consumers/. You can contact insurance agents in your area. Finally, you may wish to contact the Florida Marketing Assistance Plan. This plan sends info about your home and your insurance needs to agents in your area who may be able to help you find coverage. They can be reached by calling 1-800-524-9023, or online at www.fmap.org.

Is there a way for me to compare insurance premiums with different insurers?

You can compare the average premium charged for a $150,000 home built before 2001 or a $300,000 home built after 2005 by visiting www.shopandcomparerates.com, operated by the Office of Insurance Regulation. This Web site displays sample premiums for a variety of insurance companies, however, not all of these companies may be writing new policies in your area. An independent insurance agent can also help you compare insurance policies. When comparing insurance rates, it is important to be sure you look at the coverage being offered to make sure it is the same or similar coverage with each insurer. What your policy covers and how much protection it provides directly impacts the rates an insurer charges.

Will this action affect my other products such as Life or Auto Insurance?

At this time, State Farm Florida has only announced plans to withdraw from the property insurance market in Florida.

What should I do if I cancel my policy with State Farm Florida?

Before you cancel your State Farm Florida policy, make sure you have all the details. State Farm Florida will not begin non-renewing policies in the near future, so you have time to consider your needs and your options as you carefully search for another insurer. When selecting a new policy, be careful to compare the amounts of coverage being offered by other insurers and check the deductibles for hurricane and other perils. Also, be careful not to create a gap in coverage between your State Farm Florida policy and a new policy. If you opt to end your policy prior to your anniversary date, be sure to notify State Farm Florida in writing of your intent to cancel and the date. When you obtain new coverage, be sure to notify your mortgage lender of the change in insurance companies. This should prevent later problems with your escrow account and ensure that your mortgage company makes payment to the correct insurance company.

What is the State of Florida doing about this withdrawal?

Currently, the Office of Insurance Regulation is working with State Farm Florida to assist with the transition of customers to other private insurance companies interested in writing your business. In the meantime, the Department of Financial Services is working to provide you with tools to assist you in finding replacement coverage. The Legislature may consider other insurance changes this year during the upcoming legislative session. Contact your local legislator for additional information.

I have a commercial policy with State Farm, what should I do?

There are several commercial property insurance companies in Florida’s private market. Search your local yellow pages for commercial carriers and listings for independent agents who offer these types of policies.

I just received a notice of non-renewal from State Farm. What should I do?

If you have recently received an actual notice that your policy is being non-renewed, it is not related to the current issues regarding State Farm’s withdrawal from the state. You should immediately take steps to find other coverage for your home. The non-renewal letter you received will state the exact date your coverage ends, and you will need to obtain coverage before that date or you will be uninsured. Remember when you secure new insurance coverage for your home, you need to let your mortgage lender know about the new company.

Where can I find the order approving State Farm’s withdrawal plan with conditions?

The order is on the Office of Insurance Regulation Web site at http://www.floir.com/pdf/SFWithdrawalPlanOrder.pdf.