Insurance is going to get even more difficult in California

March 22 – Yesterday State Farm announced plans to cancel more than 72,000 existing policies in California. 

It includes 30,000 property insurance and 42,000 commercial apartment policies. 

Last year, State Farm said they would no longer be writing new policies in California. The old policies were left in place at the time, but that changed yesterday. 

Insurance is also changing in Florida, as well. 

Attorney Clint Barkdoll said, “They just feel that there’s no money to be made anymore in some of the states. As we know from before, when one of these companies does it, watch. Other companies will follow suit. Those insurance rates will start to go through the roof and in a big aggregate macro way all of us wind up paying for that.”

Pat Ryan of NewsTalk 103.7FM wondered, “What will lawmakers do in both of those states? You’ve got to wonder that they’re trying to protect some of their constituents. You can’t help but think somebody’s going to put the squeeze on there, right?”

Barkdoll confirmed, “Florida is the worst state in the country. I mean, you talk to anyone that’s living down there or has moved down there. You would fall out of your chair if you see the rates that are paying for auto and homeowners insurance. At some point, public pressure from a legislative standpoint, something’s going to have to be done. It’s just not a sustainable model at this point.”