AP: State Farm Dropping Ala. Coast Coverage (2,600 holders)

[Eugene]

Associated Press
State Farm Dropping Ala. Coast Coverage
By GARRY MITCHELL 02.02.07, 4:56 PM ET

Facing hundreds of hurricane-damage lawsuits on the Mississippi coast, State Farm Fire
and Casualty Co. cited back-to-back years of storm losses in announcing Friday it will
not renew coverage for about 2,600 policyholders mainly in Alabama's beach resorts.

State Farm has the biggest market share on the Alabama coast and is the state's largest
home insurer. Most of those affected by the non-renewal notice own beach condominiums,
state regulators said.

"This has been a difficult decision - one that was made with careful review and great
consideration," Karen Carter, State Farm's Alabama vice president for agencies, said in a
statement. "The catastrophes in 2004 and 2005 show that we must continue to manage
our property loss exposure along the coast for the sake of all of our policyholders."

-snip-

The announcement came after State Farm agreed to pay about $80 million to more than
600 Mississippi policyholders who sued over Katrina damage and at least $50 million more
to resolve thousands of other disputed claims by policyholders who didn't sue.

-snip-

Full article: http://www.forbes.com/feeds/ap/2007/02/02/ap3390865.html

[xultar]

1. Buhwawawa! I find this so hillarious. They only want to cover people where

there is no chance of anything happening.

It makes no fucking sense! :rofl:

[Dr.Phool]

2. It makes all the sense in the world.

If you're State Farm.

Speaking of which, I'd better pay my renewal to them today, before they start working on Florida. My homeowners policy nearly doubled, from $1,300 last year to $2,400 this year. A policy on the same value home I owned in Cleveland cost less than $500.

On the news yesterday, a woman, who's home was flattened in a tornado over the week-end (inland Florida) had canceled her policy, because she couldn't afford it anymore.

[xultar]

4. Why don't we all just drop off money @ their front door then and walk away?

They are really asking for money...for doing nothing.

The balls they have.

[WA98296]

6. That's what they do.

[Solo_in_MD]

10. The counter argument is why should people in Cleveland subsidize the people in Florida

Its not without some merit. Some insurance companies are actually a collection of smaller firms, one for each state. It helps adapt for state regulations and such. Those smaller companies can not amortize nationally.

[halobeam]

7. I am with you! It is ABSURD.....

if you live somewhere where you need insurance... they deny you. Then what the * is insurance for? Just to take your premium if they are pretty comfy knowing nothing will happen.

They REALLY showed their intent didn't they. Wonder what their next commercial will be about. It couldn't possibly be one that tries to pull at your heart strings by saying how they are there for those who need them, just "cuz" they care.

[xultar]

9. I'm just totally dumbfounded. I'm speechless this is so stupid.

[wellstone dem]

3. It would be interesting to know how far

back from the ocean before they will cover. Maybe they finally realized why nature made that area as a buffer zone.

[ChairmanAgnostic]

5. corpserate Amerika speaks to global warming.

See that, George? See that, AEI? They figured it out DESPITE YOUR BLOODY policies and political pressure.

[KharmaTrain]

8. This Is The New "Risk Free Insurance"

You folks on the Gulf Coast didn't know it's your fault for living in a place where Hurricanes happen :sarcasm:

So they're stinging having to make the big payout in Mississippi...violating their contract and trust with people and taking it out on the folks in Alabama. Sounds like the "Good Neighbor" people are giving you the finger again. Sheesh. But then, they've got a regime in place that doesn't tolerate incompetence, it rewards it.

[ljm2002]

11. And the state of Alabama...

...should prohibit State Farm from doing further business in the state.