The Real Deal Miami

State Farm to drop thousands of policyholders next week

January 29, 2010 10:40AM

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]