Guidry News Service has learned that State Farm Insurance has notified agents on the Texas Gulf Coast that about 11,000 homeowners’ insurance policies will not be renewed.
“As you know, State Farm Lloyds, we are the largest insurer of homes in Texas and the largest private insurer of homes along the Texas Coast,” said spokesman Kevin Davis, confirming the report. “Even with this action, we will continue to be the largest private insurer along the Texas Coast.” Listen: MP3 RealPlayer
Davis said the large claims from major hurricanes during recent years and the threat of future major storms has caused the insurance company to take the action.
“In order to ensure that we can keep our promises to all of Texas homeowners customers we have to find the appropriate balance between our exposure, the resources that we have available to maintain our standard of service, and of course, our ability to meet our financial obligations,” he said. “So, because properties in coastal areas are vulnerable to severe damage from storms, you know we have to continually assess our exposure. So, as we work through that process it requires us from time to time to not renew some risks that are closest to coastal waters and bays, and in this case, as you said, roughly 11,000 policies will be impacted.”
Davis said State Farm agents will be reaching out to those policy holders and advising them of their options.