State Farm Insurance Company imposed a moratorium on new homeowners customers in Missouri and Kansas, expanding its ban against new residential policies to five states. According to the Kansas City Star, the company is the largest home insurer in the two Midwest states and the nation.
Citing market conditions and the need to guard its financial position against claims from weather catastrophes and other losses, State Farm indicated it would begin selling new policies as soon as conditions allow. The moratorium in Missouri and Kansas could last up to two years.
State Farm is continuing to offer auto insurance to new customers. It is also the leading provider of automobile coverage in the two states.
With the announcement concerning Missouri and Kansas, the company is no longer taking on new customers for houses, condominiums or mobile homes, or providing new renter’s insurance polices in Arkansas, Kansas, Louisiana, Missouri and Oklahoma.
State Farm has implemented sales restrictions in Arizona, California and Texas and has indicated it plans to pull out of New Jersey’s auto insurance market altogether.
The company asserts it paid out $1.27 in Kansas and $2.50 in Missouri for each premium dollar it earned in 2001. State Farm is still renewing customers in those states, but customers in Missouri can expect an average premium increase of 13 percent and rates are expected to jump an average of 16 percent for State Farm customers in Kansas.
Topics Homeowners Kansas Missouri
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