Denied Rate Hike, State Farm to Axe Fla. Home Insurance

Citing a “weakened financial position,” State Farm’s Florida operation is planning to completely exit the home insurance business there within 2 years, the Miami Herald reports. Such a move would need regulatory approval, and require a 180-day heads-up to affected homeowners. The move comes after the insurer, Florida’s largest with 1.2 million properties, could not obtain approval to raise rates drastically.

State Farm had petitioned for a rate increase of 47.1%, which was denied by the state insurance commissioner. “Faced with steeply declining resources to cover future claims and expenses, State Farm Florida has little choice,” the company’s Florida chief said. (More homeowners stories.)