Now that State Farm’s fleecing of the NFIP has been laid bare for all to see predictably, like a spoiled brat, Ed Rust and his gang of thugs in Bloomington are picking up their toys and going home. Paige St John at the Herald Tribune has the story: (h/t to a reader)
State Farm Mutual confirmed Thursday that it will stop administering federal flood insurance policies this fall, leaving government officials to find a new home for 800,000 customers nationwide who bought their coverage through the company.
State Farm does not insure property against floods or storm surge. But it is the nation’s largest administrator of such policies written by the National Flood Insurance Program.
In exchange for administrative fees and commissions, State Farm writes federal flood policies and handles claims, including sending adjusters to homes to assess damage.
Predictably FEMA had no clue what was happening in the program they are supposed to be overseeing:
It was unclear Thursday how government officials would respond. A spokesperson in the Federal Emergency Management Agency’s Washington office said she was unaware of State Farm’s withdrawal.
What this means is State Farm has made itself irrelevant to the ongoing NFIP debate and again highlights the folly of trying to segregate Hurricane perils between the private and public sectors. Without the old scam of assigning all the loss to flood (ie the taxpayers) and taking credit on the other side it is clear the private market is not capable of providing windstorm coverage to the over 50% of America’s population living within 50 miles of a coastline.