State Farm Insurance Disturbance Causes Agent Storm
July 3rd, 2009Hit by deepening financial pressure, State Farm Florida Insurance Company recently announced its plan of departing the home and property insurance business in Florida. But for a while now, even companies like Allstate Floridian, Nationwide Insurance, Travelers, Metropolitan Property & Casualty, Hartford Insurance Company and even Hanover Insurance Company have been reported to be canceling policies, or serving notices of non-renewal. Ever since the 2002 and 2004 hurricane seasons, many insurance companies with pan-US business, suffered financially because of huge insurance claims, causing many of them to retreat from the home insurance market in Florida in droves. State Farm Florida is the most recent of the big insurance companies to reveal its stance on continuing business in Florida.
Smaller insurance companies anxious to fill void
The latest announcement by State Farm Florida of its intention to vacate the home insurance market in Florida has caused fury on some fronts and serious concern for others. Even during good years, finding a good insurance deal is difficult for most Florida residents, specifically those living in coastal areas. Now, with the hurricane season having just begun, and with State Farm Florida’s decision to withdraw; there is a vacuum that insurance agents from smaller insurance firms are battling to service. Individuals facing the threat of losing insurance coverage are scrambling to find new insurers; but evaluating these and understanding the policies is a daunting task for most.
The wrangle on multiple fronts
Individuals are to locate insurers that would adequately cover them. Largely due to the dominance by the larger companies, people have been left unfamiliar of the insurance options available to them. The big issue for most is finding insurers consenting to provide policies that will cover previously damaged or semi-restored homes; and these people face the threat of being left uninsured during the hurricane season. With State Farm Florida’s certain calving of its portfolio of policy holders, agents are finding it difficult to locate and process the more choice policy holders who would be left without adequate coverage. Along with this snag, smaller companies have directives on the kind of homes as well as the areas they are willing to cover. Companies like, ChoiceOne, Tower Hill, Travelers, Bankers, GMAC Home, Mercury, Liberty American, Citizens, American Strategic and Universal Property & Casualty are in a battle to locate and provide coverage to individuals who would be left without insurance due to the appearing exit of State Farm Florida from the home and property insurance business in Florida.
The identification game
With policy providers not in the mood to provide policies to specific profile of home owners and due to the predominant rates, many individuals find that the supply of policies is fast drying up. Insurers at the same time are finding it an arduous effort to locate the kind of people they would be immediately attracted to. At this time, online companies like RateElert.com using convergence technologies to bring together individuals with a specific need and insurers willing to cover those requirements; through exceptional match making criterion available through their services. Also, companies like homeinsurancebuyers.org have ready fact-finding up for grabs that enable customers locate policy providers, and provide a premium service to help people locate the ideal insurance coverage that’s suited to their requirements.
