More Insurance Firms Leaving High Risk Areas (Part 2)
State Farm, is dropping almost 50,000 clients in Florida and has indeed stopped renewing and issuing new home insurance policies for the state. Clients cry foul for most of them have been clients for decades some even without filing a single claim. And others are turning to the courts for resolution. These types of actions by insurance firms may lighten the load so to speak by lessening the risks they are taking, but are they really willing to risk the loss of these homeowners (most of whom have more than one type of insurance with the same firms that say they are being dropped), well I guess they know what they are doing. These are still after effects of the sub-prime lending problems that sent ripples around the globe in money markets and economies with no end in sight.