Some State Farm policyholders in South Florida and across the state could see nonrenewals notices pop up in their mailboxes, beginning later this month.
The company, the largest private insurer of homes, condominiums and mobile homes, had announced in July that it would not renew about 50,000 multiperil homeowners policies -- which include windstorm coverage -- throughout the state where the homes are located within one mile of the coast.
The notices will begin going out Nov. 15. State Farm said all policyholders affected by this action will have at least 110 days to shop around for another insurer.
The move is part of State Farm's strategy to continue to reduce its hurricane exposure throughout the coming year.
The company has cut back its exposure in Florida by practically not writing new policies since Hurricane Andrew struck South Florida in 1992.
The company also will stop providing windstorm coverage on residential policies that lie in the state's designated windpool area. In South Florida, the windpool area runs east of Interstate 95 and U.S. 1.
The company couldn't immediately say how many policyholders would be affected by this additional reduction in coverage. Again, notices on these nonrenewals also begin Nov. 15. The insurer, whose parent company is based in Bloomington, Ill., has a total of 53,294 policies in Miami-Dade and 70,495 policies in Broward, according the Office of Insurance Regulation. These totals include condo, homeowners' associations and renters policies.
State Farm initially had wanted to be more selective about the policies it shed within that one-mile stretch along the coast, intending to give preference to homeowners who had other policies such as auto and life with the company.
But OIR objected to State Farm's plan and only allowed the company to use geography as a criteria for nonrenewals. State Farm accepted this condition as part of a broader agreement with regulators reached last month.
State Farm said it will comply fully with the agreement reached with OIR.