State Farm Pulls Out of Florida, How it Affects Auto Insurance Policyholders

State Farm announced that it will be discontinuing its homeowners insurance operations in Florida, because it cannot charge rates that will cover its potential risks.

State Farm's home insurance operations are owned by their auto insurance sector. Florida lawmakers are considering legislation that will prevent insurance companies from selling only auto insurance if they also sell home insurance in other states.

potentially, this could have ramifications for auto insurance policyholders, but as of right now, State Farm auto insurance policyholders are not affected by the discontinuation of home insurance by State Farm in the state of Florida.