It came in the mail yesterday, a letter from the insurance company on one of our rental properties. Those letters that I dislike so much.
It read,
"Dear Mrs. Shores,
State Farm Florida and the Florida Office of Insurance Regulation (OIR) reached a settlement in December 2009 allowing State Farm Florida to maintain a property insurance presence in your state. The settlement allows State Farm Florida to stabilize its financial condition through a reduction in property policies over the next year."
And, for the bad news...
"Unfortunately, your policy is one of the property policies being non-renewed. In the next few days you will receive an "official" non-renewal notice on your property policy. You have a minimum of six months from the date of the non-renenwal notice before the property policy is non-renewed..."
We had heard that this was coming.
A couple of years ago, State Farm cancelled policies on the beachside. I don't have any rentals near the beach, they are on the mainland. However, they also cancelled everything that was within one mile of the Indian River Lagoon. So, we had 6 rental policies cancelled. We had to find insurance elsewhere... more expensive insurance.
I'm hoping that this will be the last one of these letters that I receive.
FOOTNOTE: A week later, I received 5 more cancellation letters on my rentals. UGH!
Sandy Shores REALTOR®,Melbourne FL Real Estate
Brevard County Real Estate and Investing
I specialize in Residential, Investment & Relocations.
We have a team of professionals to facilitate your Short Sale.
I buy, sell, rent, own and manage Investment Property.
that for you
I remember in 1992 after Hurricane Iniki on Kauai Insurance companies were canceling like crazy. It was hard even to get fire or car insurance. A few years later when it came out that Hawaii was the most profitable place for insurance companies to do business insurance companies came to Hawaii in force. Hopefully it will change in your area too.
I hate those letters also. Over regulation is responsible for many of these actions. A law gets past say for automobiles and it effects the bottom line for the insurance companies...Ouch
The sad thing is that in recent years, insurance companies had relatively few claims from adverse weather yet they are cancelling policies.
Oompa, insurance is such a big scam!
Sandy this saga will continue to worsen over the next 3 years. After that I'm not sure if we'll be able to get coverage anywhere in the state that's reasonable. Beach front will be taking the brunt like you've mentioned here. Thanks for sharing it!
Sandy I know and have felt your pain. After Katrina we don't have many choices period. I think they should make them cancel a life and auto policy for every home policy they cancel.
Hi Sandy, Sorry to hear the news, what a hassle. I remember when you had to find the other insurance, so hopefully this trnsfer will be easier.
Sandy, in my opinion all insurance companies should be lined up in a firing squad with sharp shooters behind the trigger!
Sandy, they have made tons of money on Florida and then blew a lot of their investments in the stock market. I just wouldn't use any of these companies for any of my insurance when they desert long time loyal paying customers.
I don't any name brand insurance companies for my rentals or my personal residence. Wish Florida would just let the insurers raise the rates as they need to instead driving all of them out of the State. Oh well. Get a good independent agent to help you out.
State Farm, like most insurance companies, wants to limit risk...although risk is what the business is all about!
Julie, Oh boy, that sounds like our area after hurricanes Jean and Frances. Insurance companies were leaving the state in droves. Interesting they found that Hawaii was so profitable. We'll have to see what happens here in FL.
Paul, They all seem to be trying to limit their risk as much as possible.
Silvia, In our area many were hit hard by Tropical Storm Fay a couple of years ago, with 30 inches of rain in 24 hours. Many were flooded in or out of their homes. I'd have to say that's when owners that didn't have it rain out to get flood policies.
Hi TOTO, The companies like when they aren't paying out anything, there's no question about it. Then we they do have to pay, often they can't handle the burden.
Kevin, I agree, I think that beach front properties will find it incredibly difficult to keep insurance.
Hi John, Oh I've often thought about the devastation that Hurricane Katrina had on your area; lasting effects that will remain for a long time to come, I'm afraid.
Hey Mary, It wasn't so long ago that we had to transfer those other policies. You have a great memory.
Caren, Oh, you evil woman you (LOL). Agreed, there certainly should be some other resolution to the problem, then all of them just high tailing it the heck out of Florida.