AM Best Downgrades State Farm -Florida Rating

When you think of top insurance agencies, Progressive, Allstate,State Farm come to mind ,State Farm of Florida is quickly losing its status among the elite. AM Best rating agency has downgraded it from a B+ to a B.

The top rating agency downgraded State Farm's financial strength to fair, which in turn lowered its credit rating. The rating change was made because of the agency's concern of State Farms inability to pay large claim payouts, in the event of a catastrophe.

In Januaray, State Farm began pulling out of homeowners market in Florida and issued nonrenewals to policyholders. They made an attempt to request a rate increase prior, but was rejected by the state commissioners.

A spokeswoman for the State farm cites the downgrade as ''unfortunate but understandable'' given the insurer's financial condition.

Certainly this should come to know surprise to State Farm, they probably loss half of their business with the loss of homeowners premiums. If you are covered by State Farm, I'd be very worried if I were you, because as long as they are in the hole, it'll be difficult for them to dig themselves out.There only solution is to charge the amount of $$premiums necessary needed to cover any anticipated losses. Hello, this is Florida! There are tons of hurricanes to be had. Translation? Show them the money!!