Wexler Calls for Congressional Investigation into State Farm Insurance for Outrageous Rate Hike Request
47.1% rate increase would devastate Floridians
(Washington, DC) Today, Congressman Robert Wexler (D-FL) called for a congressional investigation into State Farm, the largest private property insurer in the state of Florida, following reports that the company asked the state for 47.1% rate increase on homeowner policies. If State Farm’s requested 47.1% increase is enacted, 1 million Floridians – including over 177,000 people in Broward, Palm Beach, and Miami-Dade counties – will face enormous rate increases.
“These requested rate hikes are unacceptable, and are not consistent with the realities of the conditions in Florida. This improper request by State Farm warrants an immediate investigation by Congress into possible abusive business practices. I trust that the State of Florida will thoroughly examine this matter and believe Congress must also play a significant role to ensure that consumers are protected nationwide, particularly given the inappropriate behavior of insurance companies following Hurricane Katrina.
“For too long, I have seen the homeowners’ insurance rates of my constituents double and triple -- even when they have not made in a claim in years,” said Congressman Wexler. “Now, when Florida has not been hit by a major hurricane in two years, State Farm’s requested adjustments could further spike insurance policies for South Florida families by up to 70%. South Florida is already one of the regions hit hardest by the mortgage crisis, and increasingly unaffordable homeowners’ insurance policies further threaten the ability of families to stay in their homes.”
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Congressman Wexler is Chairman of the Europe Subcommittee and a senior member of the House Committee on Foreign Affairs and the House Judiciary Committee; and he also sits on the Financial Services Committee.
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