Should You Keep Your Homeowners Insurance with Allstate, Nationwide, and State Farm?Buy The Guide
State Farm Florida recently announced that it is cancelling its plans to withdraw from the Florida home insurance market.
The company is also moving forward with plans to eliminate certain discounts that you've previously enjoyed such as:
- Being a State Farm customer who has filed few or zero Florida hurricane claims.
- Price breaks for having smoke or burglar alarms.
- Discounts for buying both home and auto insurance from State Farm Florida.
Losing these discounts will have the effect of hitting you with a 28% rate increase on average. That plus the recently granted 15% rate increase will produce an effective rate increase of 43% for you as a State Farm Florida policyholder.
While the State Farm Florida Insurance Company plans to stay in the state, it is still moving forward with a plan to cancel an additional 125,000 Florida home insurance policies next year.
Smart Floridians like you know that you can't wait around for this drama to play out.
You know that if your home is covered by State Farm Florida it is time to head for the exits fast.
Why? Because you know that there is a very limited supply of private homeowners insurance in Florida.
You know how hard it is to find affordable home insurance in Florida and there is no way that you want to be part of a game of musical chairs where there just aren't enough chairs to go around.
Most of you know what it is like to get a Florida home insurance cancellation notice and you don't want to be around for the next one.
And you know that there is no way that you want to compete with over 125,000 State Farm Florida policyholders to find a new company when thousands of Florida home insurance cancellations all start to hit at once.
If you wait you know there is a good chance that you will end up with Citizens Property Insurance Corporation or a very small, undercapitalized, Florida home insurance company.
Right now, there is only one answer to the question: "Should you keep your home insurance with State Farm Florida?"
Take action now by subscribing to The Home Insurance Buyers Guide.
For only $19.99 you'll get two weeks access to our on-line database, where you will be able to find, screen, and contact the Florida home insurance companies still writing new business in your area. Learning about even just one Florida home insurance company that you weren't aware of could save you thousands!
Not long ago, Allstate Floridian was front page news as it too asked the State of Florida for massive increases for Florida home insurance.
Like State Farm Florida, the Allstate Floridian rate request was turned down and many of their business records were subpoenaed by the State of Florida and their license to sell insurance was temporarily suspended.
The dispute with Allstate Florida and the state ended with Allstate agreeing to rate reductions and to write 50,000 new Florida home insurance policies over the next three years.
In order to emphasize that the 50,000 new policies are separately capitalized from the Allstate parent insurance company, Allstate Floridian Insurance Company recently changed its name to Castle Key Insurance Company while Allstate Floridian Indemnity Company changed its name to Castle Key Indemnity Company.
If you have your home insurance with either Castle Key Insurance Company or Castle Key Indemnity Company, you are smart enough to know that it's only a matter of time before they ask for higher rates.
And the rest of us in Florida aren't holding our breath in anticipation of the 50,000 new policies either.
We know that if those new policies are ever written they will be for newer, inland homes, not older homes in Florida coastal counties.
Last but not least, you know that if you stay with Allstate Insurance in Florida and they cancel your policy in the future, you are going to be part of the mad scramble to find Florida home insurance with all of the home insurance policyholders cancelled by State Farm Florida.
So your answer to the question: "Should you keep your home insurance with Allstate Florida?" is also a resounding "No"
Until recently things were relatively quiet at Nationwide Insurance Company of Florida.
Following the 2004 and 2005 Florida hurricanes, Nationwide Florida received approval for massive home insurance rate increases.
That was followed up by the cancellation and non-renewals of thousands of Florida home insurance policies.
Now Nationwide Insurance Company of Florida recently announced that it will be cancelling an additional 60,000 Florida home insurance policies next year.
You are supposed to be taking comfort in the fact that you will be offered an opportunity to obtain coverage from one of the Tower Hill Insurance Companies.
While that might sound like good news, smart Floridians like you know that there is no guarantee that you will be offered coverage by Tower Hill.
And many of the Nationwide Florida policies will be dropped at the same time as the State Farm Florida cancellations. As a customer of Nationwide Insurance Company of Florida you know that if you are one of the 60,000 policies being cancelled you might not be able to find a new Florida home insurance company if you are competing with State Farm Florida customers who have also recently lost their coverage.
You know the answer to the question: "Should you keep your home insurance with Nationwide Florida?"
If you still aren't convinced, it is possible that someone has convinced you to stay with State Farm Florida, Allstate Florida, or Nationwide Florida because your home is too old or too close to the coast to find coverage with another company.
If you think that you don't have any other options, take a look at a question recently posted by a new Florida homeowners insurance agent on Yahoo Answers:
The insurance agent in this post makes three critical points:
- The average consumer "thinks" there is no alternative to State Farm Florida, Allstate Floridian, or Nationwide Florida.
- There are several small companies writing policies in Florida with great rates, but the captive agents of the big boys can't write them so people don't really know.
- This quote from the agent says it all: "I honestly haven't had a single lead who I couldn't save hundreds, maybe more than a thousand dollars a year."
If a new insurance agent with a 100% success rate with saving homeowners up to a thousand dollars per year can't convince you to head for the exit, you are running a the risk of playing a high stakes game of musical chairs - where unfortunately there just aren't enough chairs to go around.
The State Farm Florida announcement is a warning shot signaling an accident waiting to happen.
Don't let it happen to you.
Now is the time to shop your policy - while there is still some limited capacity in the Florida private homeowners insurance market with some smaller carriers.
The Home Insurance Buyers Guide can help you find other private insurance options with companies that are investing in Florida, growing their market share, and taking on some of the policies being cancelled by State Farm Florida, Allstate Floridian, and Nationwide Insurance Company of Florida.
Now is the time to act - before the State Farm and Nationwide policies are cancelled and you are the last one standing when the music stops.
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