State Farm official says 'Don't hit panic button'

 

 

By T.K. Culpepper

Special to Gulf Breeze News

news@gulfbreezenews.com

 

 

   Homeowners in the Sunshine State are one month into a six-month window state law gives insurance officials to approve or deny State Farm Florida's plan to halt property insurance coverage here.

   The Winter Haven-based insurer announced Jan. 27 it would no longer write property insurance policies in the state because of what company President Jim Thompson cited as “steeply declining resources to cover future claims and expenses.”

   If you're one of the hundreds of thousands of Floridians still carrying property insurance from State Farm of Florida, you might be assuming you're next if one of your neighbors has already been canceled by the giant insurance carrier. But company officials warn against hitting the panic button: Cancellation notices under the terms of the company's phase-out plan will still be some time in coming.

   In a written statement to Gulf Breeze News, State Farm spokesperson Michal Connolly emphasized last week the current situation for all State Farm Florida policyholders.

   “All homeowners are guaranteed at least six months notice (after final approval of plan) prior to anything changing with their policy,” Connolly said. “No one has received a letter of cancellation or been dropped as a result of our recently announced proposed plan to discontinue property insurance here in Florida.”

   On Feb. 19, Gulf Breeze News reported that a local resident already had received a property coverage termination notice, effective March 1. The termination, however, was not related to State Farm Florida’s grand plan to discontinue underwriting property insurance.

   Florida law gives insurance officials a 180-day window to evaluate State Farm Florida's proposal.

   The date for ending coverage will vary according to each individual policyholder’s contract with the company. The clock doesn't begin ticking for consumers until the Florida Office of Insurance Regulation (FLOIR) grants State Farm Florida's request to terminate property insurance coverage, so consumers are now looking at a bare minimum of a nine-month window. The phase-out for State Farm Florida could take as long as two years to complete.

   FLOIR spokesman Ed Domansky told Gulf Breeze News that this is “a good time to shop around.” As Domansky has suggested, consumers in the market for new coverage should visit FMAP.com for more information.