Bloomberg reports: State Farm Plans to Leave Florida Residential Market.
State Farm Mutual Automobile Insurance Co., the largest home insurer in the U.S., plans to drop 1.2 million customers and withdraw from Florida’s residential market after a request for a rate increase was denied by state regulators.
The insurer cited risks from hurricanes and the rising costs of everyday claims from the state’s homeowners in an e-mailed statement today. The surplus from State Farm’s Florida unit fell by $201 million in the first three quarters of 2008, a period where no hurricanes hit the state.
That should provide cheer to the Florida market.
But always remember this gem, folks:
In Miami, Ron Shuffield, president of Esslinger-Wooten-Maxwell Realtors, predicted that a limited supply of land coupled with demand from baby boomers and foreigners would prolong the boom indefinitely.
"South Florida," he said, "is working off of a totally new economic model than any of us have ever experienced in the past."
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