State Farm Dropping Policyholders
After 24 years with State Farm, Brenda Harding is being dropped by the company that she has come to trust like an old friend. Harding’s home in South Florida is apparently now too close to the coastline and State Farm is dropping her as a policyholder as they are doing to about 50,000 other policyholders. Furthermore, the company recently made a request to increase homeowner’s rates an average of 47.1% statewide. If State Farm’s request for higher rates is denied, the company will likely use the denial to justify dropping even more policyholders.
This leaves homeowners in a difficult position and leaves them wondering why they are being abandoned so suddenly after being a policyholder for years. State Farm claims the hurricane risk in Florida is too great for them to cover unless they increase premiums. State Farm stated, “[r]ates will need to rise, and/or risk will need to further decrease.” These changes are leaving people without coverage in a state so prone to devastating weather conditions.
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