Glover stated that the move was "a very tough decision for us to make, but it is part of our decision to remain in this market." The carrier’s paperwork was filed on Thursday with the state Office of Insurance Regulation announcing its intention to drop the policies.
Policyholders who already have a State Farm auto policy will be able to retain portions of their homeowner policy, such as fire and theft. However, no State Farm customers in the affected areas will be insured for windstorm coverage.
Local independent agents said the cut by State Farm proves that the Legislature has much more work to do in dealing with the state's insurance crisis.
"This proves the legislative fix was not all it was made out to be," said John Laurie, a principal in BB&T-Wyman, Green & Blalock in Bradenton.
"It proves the Legislature is not fixing the main problem, which is getting the carriers to re-engage," said Andy Gregory, co-owner of Des Champs & Gregory in Bradenton. "We need to deregulate and let the free market work."
Other direct writer insurers such as Allstate and Nationwide have already pulled out of homeowner policy-writing in Florida.
But the pullout by State Farm will mean more business for independent agencies like Gregory's and Laurie's.
"More people will be on the street shopping for replacement coverage," Laurie said.