State Farm met resistance from Florida regulators after proposing a statewide rate hike for landlord insurance.
The average proposed hike exceeds 57% of current premiums.
According to an industry report, regulators are concerned about granting the rate hike in conjunction with the insurer’s decision to drop a number of policyholders, and not write new business.
State Farm Florida announced it plans to raise rates on renters insurance, and condo and homeowners in future filings.
The company claims it needs the increases in order to shore up its finances, according to the report.
Advocates pointed at proposed profit figures and higher-than-average commissions paid to agents, and objected to the company gaining approval to retain profit while at the same time shedding policies and refusing to write new ones.
Regulators are concerned about the limited accessibility of coverage for landlords throughout the state.
Advocates chided the company for not holding public hearings for the benefit of affected policyholders. However, the company defended that decision by pointing to poor attendance at similar meetings in the past.
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