State Farm, Just Another Greedy Company
We have not had a massive hurricane in Florida in years. On top of that, home prices have gone down – WAY down! Despite all of that, State Farm) currently Florida’s largest private property insurer) has filed a request with the Office of Insurance Regulations requesting a rate hike that would average 47.1%
Are you kidding me?
The insurance company says they are requesting the rate change simply so they can afford to stay in the market. But, as I pointed out – there have been no massive weather disasters of late. Homes cost less and need less coverage. Nonetheless, State Farm wants us to believe they cannot stay in business here in Florida unless they raise rates almost 50%?
There were computer models that predicted that 2006 and 2007 would be record years for catastrophic storms and hurricanes. Insurance companies immediately responded by hiking prices in preparation However, the storms never came. Let State Farm, and other insurance companies, operate off the price increases they have ALREADY applied.
This is sometimes a technique some insurance companies use to get their current poly holders to drop policies. That way they can say they have offered the coverage to home owners and still get away with mostly just covering car and life insurance here in Florida – something often referred to as “cherry picking”.
And, while I am at it – I take offense that insurance companies want me to take up the slack in a shared risk with homeowners who make a personal choice to live on the beach or in a high-risk flood zone. What good is it doing me to live inland, in a less risky area?
You are not fooling anyone, State Farm. We know you are looking at record profits. We know that infernally you are not operating independently in Florida. We know that the high rates here are funding your upper level employee’s pockets with nice bonuses and pay increases.
I surely hope you’ll be changing insurance company. I can’t believe they are requesting a 47% increase. How can they justify this?