Nearly one-quarter of private property and casualty insurers in Florida have received “D” or “E” ratings by Weiss Ratings, meaning they’re at risk of going under with the next major weather disaster in their regions. According to the South Florida Business Journal, the Jupiter-based firm bestowed the low financial strength ratings upon 29 insurers in the state based on their positions at the end of 2010. The second-largest insurer in the state, State Farm Florida Insurance, has $888 million in homeowner premiums and got a “D” from Weiss after posting a $66.2 million loss last year. [more]

Despite double-dipping home values, insurance premiums are poised to increase nationwide, and in many case, they already have. According to the Wall Street Journal, some of the largest insurance companies in the country say they either have or will be raising rates after five years of stability. Premiums, they say, are based on the estimated cost of rebuilding a home — not on its current market value. So although Americans are still battling falling home prices, the cost of gasoline has risen 37 percent over the past year, while cooper and plywood now cost 20 percent or 8 percent more, respectively. [more]

South Floridians with State Farm property insurance may soon lose their coverage. The company, which waged a bitter fight to raise premiums and was ready to depart the state despite being its largest private employer, will sent out nonrenewal notices to thousands of customers next week. The Illinois-based insurer was allowed by the Office of Insurance Regulation to eliminate 125,000 policies over the next 18 months to cut its liabilities in the event of a major storm, but will remain in Florida. The first wave of terminations will go to people whose policies are up for renewal on Aug. 1, according to State Farm spokesman Chris Neal. [Miami Herald]

State Farm will not withdraw from Florida’s property insurance market, Florida Insurance Commissioner Kevin McCarty announced today. The company, which is the largest private insurer in the state, had planned to leave because McCarty rejected its proposed 47.1 percent rate increases for customers. Under a new deal, State Farm will be allowed to increase its rates by 14.8 percent and not renew 125,000 Florida homeowners’ policies, primarily in high-risk areas. State Farm will keep roughly 680,000 policies in the state. [Palm Beach Post] and [CBS 4]

Florida Insurance Commissioner Kevin McCarty said State Farm might stick around, after all. McCarty said he remains cautiously optimistic that the largest private insurer in the state will continue to do business here, despite earlier plans to leave after it was not allowed to make dramatic increases in its premiums. In January, State Farm said it would stop writing property policies in Florida, where it covers 700,000 homes. Bill Newton, executive director of the Florida Consumer Action Network, agreed that homeowners will benefit if State Farm stays in Florida. [Palm Beach Post]

As homeowner insurance giant State Farm prepares to exit Florida, some
lawmakers are anxious about whether there’s enough private coverage for
the hurricane-prone state. Company officials and lawmakers are quietly discussing whether steps
could be taken in a special session this fall to loosen industry rate-setting regulations. Similar legislation was vetoed this summer by
Governor Charlie Crist, who concluded Florida’s insurance market was
adequately financed. Questions continue to swirl around the solvency of smaller insurers. [more]

State regulators are allowing State Farm Florida Insurance to eliminate
or reduce some of the discounts it offers policyholders, increasing
premiums on homeowners’ policies. The state said it must still offer
wind mitigation features such as storm shutters, impact-resistant
windows and doors or reinforced garage doors. The company last year
sought a 47.1 percent rate hike last year to make up some of the
revenue it lost via the credits. State Farm will be pulling out of
doing business in Florida over the next two years. [more]

Homeowners could see an end to many mitigation discounts State Farm
Florida Insurance policyholders receive, and that could result in rate
increases of 45 percent. State Farm is leaving Florida, and will stop
writing policies in the next two to three years, but is struggling to
stay afloat until that happens. Ending the discounts could allow it to
remain solvent, company officials said. The company sought a 47 percent
rate hike last year, but the state insurance commission rejected that
attempt. [more]

A Florida appellate court has denied State Farm Florida’s request to
raise its home insurance rates. The company had proposed a 47 percent
rate hike and appealed to the First District Court of Appeal when
Florida Insurance Commissioner Kevin McCarty denied the increase. State
Farm has 15 days to ask for a rehearing, but a company spokesperson
said the insurer has not yet decided whether to request one. State Farm
announced plans in January to leave Florida’s property insurance
market. But the company has disagreed with McCarty’s
requirement that State Farm find another home for its policies. [more]

A big national insurer won’t have carte blanche to set high rates in
Florida if Governor Charlie Crist goes ahead and vetoes a bill written
in the wake of State Farm Florida’s withdrawal from the state last
year. State Farm sought a 47 percent rate increase, claiming a need to
fill its coffers to be prepared for heavy storm damage. [more]