State Farm will remain in Florida under a deal that allows it to boost insurance rates by a 14.8% max and drop about 125,000 Miami real estate homeowner policies.
Some owners of Miami homes might see a greater increase because State Farm will also cease a series of discounts that it voluntarily offered, such as for having a burglar alarm or multiple policies with the company.
Kevin McCarty, Florida Insurance Commissioner, announced the agreement Wednesday morning, ending a nearly 11 month standoff with the insurer.
The agreement ensures the state's largest private insurer will maintain about 680,000 Miami real estate policies.
McCarty said during a news conference in Tallahassee Wednesday morning, "A leaner State Farm is better than no State Farm at all.''
State Farm agents will have the opportunity to place the owners of Miami homes that will be dropped by the insurer with other companies.
Belinda Miller, Florida's deputy insurance commissioner, said during the news conference that Citizens Property Insurance should " be only a last resort'' for these Miami homes.
In January, State Farm had said it would stop writing Miami real estate policies in Florida after it was denied a rate increase of 47%.
The 125,000 State Farm policies that will be dropped will come from high-risk areas, likely including South Florida, McCarty said.
The policies to be dropped will begin to receive Nonrenewal notices on February 1 for nonrenewals beginning August 1.
Contributed by MLR Realty
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