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.