Here’s Anita Lee on top of another breaking insurance story – this one about State Farm’s decision to back off the water and blow off wind coverage, too.
State Farm Fire & Casualty Co. has decided not to renew property insurance policies for Coast residents who live within 1,000 feet of the Mississippi Sound.
Also, wind coverage will no longer be included in homeowner’s policies for existing customers who are 1,000 feet to 2,500 feet from the water.
State Farm would not confirm the decision Wednesday afternoon. Public officials informed of the news by Mississippi Insurance Commissioner Mike Chaney confirmed to the Sun Herald that the company was State Farm.
Moves like this are a reminder of the days when W.L. Jaquith ruled mental health in Mississippi. Any time Jake couldn’t get what he wanted at the Capitol, he’d start calling families to come pick up patients and boy would they ever kick up a fuss – and, if calls didn’t kick it up enough, he put a few on the bus.
This is Chaney’s biggest test yet; but, you’ve got to hand it to him, the man knows how to recognize a Jaquith move and what to do when he sees one.
“We’ve had many very productive meetings with other carriers and we are very confident that those homeowners who are not renewed will be able to get coverage,” Chaney said. “It may not be at the best price, but they will be able to get coverage.”
The Sun Herald could not get Chaney to confirm the name of the backing-off, blowing-off company he discussed with public officials but he did explain what would be taking place.
Chaney’s office was able to win a couple of concessions, he said: Non-renewals will begin only after hurricane season ends Nov. 30 and withdrawal of coverage will effect fewer residents than originally planned.
The proposal initially called for dropping about 20,000 policies, but that has been pared to 1,100 policies to be cancelled completely. Wind coverage will be dropped from 5,000 or more policies, Chaney said.
Wonder if any of those other carriers offer auto insurance, too.