State Farm will stay in Florida, hike up rates 14.8 percent

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]