INDIAN RIVER COUNTY — State Farm has reached an agreement that will kept the insurance giant in Florida, though it will shed 125,000 of its 810,416 policies and institute a 14.8 percent rate increase for all homeowner and condominimum policies, it was reported Wednesday.
It is not clear how many of the estimated 7,000 policies in Indian River County might be affected by the agreement. Non-renewal notices will begin to be sent out next February, the South Florida Business Journal reported on its Web site. The insurer had asked to raise its rates an average rate 67.1 percent and when the state balked, State Farm threatened to pull out of Florida all together.”This agreement is the product of a long and arduous negotiation process,” Insurance Commissioner Kevin McCarty said in a statement. “The final result is beneficial to the people of the state of Florida, and beneficial to the Florida insurance marketplace.”
The South Florida Business Journal also reported McCarty said in a conference call that State Farm had justified the 14.8 percent rate increase and that it should not be construred that a deal was reached to keep the insurer in the state.
