State Farm Leaving Florida: What This Means For Your Policy

In May 2023, State Farm announced they are stopping new homeowners policies in Florida. If you are a State Farm customer — or were — this is what you need to know.

What State Farm Actually Announced

State Farm is stopping:

• New homeowners insurance applications in Florida
• New commercial residential property applications

State Farm is NOT stopping:

• Existing policies (for now)
• Auto insurance
• Life insurance

Are You An Existing Customer?

If you currently have a State Farm homeowners policy:

• Your policy remains active
• You can renew for now
• But: State Farm can always decide to wind down existing policies too

Other insurers (Allstate, AAA) have started non-renewals of existing customers after first stopping new business.

Why Is State Farm Leaving?

State Farm's official statement mentioned:

• Catastrophe exposure
• Reinsurance costs
• Inflation in construction costs

What they did not say but everyone knows:

• Florida is not profitable for them
• Hurricanes + litigation = losses

What If You Get Non-Renewed?

State Farm must give you:

• 120 days notice (before hurricane season)
• 100 days (rest of the year)

Your options if you get a non-renewal:

1. Shop with other insurers — use an independent agent
2. Citizens Insurance — the state-backed option
3. Surplus lines — non-admitted insurers

Start shopping EARLY. Do not wait until the last month.

The Bigger Picture

State Farm is not alone. Since 2020:

The private market is shrinking. Citizens is growing.

What This Means For Premiums

Less competition = higher prices.

Homeowners who lose their insurer often report:

• Premiums that rise 50-100%+ at new insurer
• Less choice in coverage
• Stricter requirements (roof inspections, wind mitigation)