After many discussions, disputes and negotiations, State Farm Insurance in Florida has dropped the original plan to withdraw entirely from the property insurance market in the State of Florida. After the Office of Insurance Regulation denied a 47.1 increase that was presented by State Farm over a year ago, the company quit writing property insurance throughout the state.

In December negotiations were made by the Office of Insurance Regulation to State Farm and an agreement was made. In an effort to reduce State Farms liability in Florida, 125,000 policies will not be renewed over the next year and a half. Property insurance clients will begin to receive those notices by next week. A majority of the policyholders that will not be renewed are high-risk coastal area clients.

Another part of the agreement states that State Farm will be permitted to increase their rates up to 14.8 percent.