MOBILE, Ala. — State Farm Fire and Casualty Co. says it’s shifting its flood insurance business to the federal government, affecting thousands of policyholders in Alabama and Mississippi.
Company spokesman David Majors says that as of the end of last month, State Farm had almost 21,000 personal and commercial flood policies in Mississippi and about 8,000 in Alabama.
The Press-Register in Mobile, Ala., reports the Illinois-based insurer will gradually transfer those policies to the Federal Emergency Management Agency beginning in October.
Although FEMA is responsible for overseeing the federally-backed flood insurance program, it relies heavily on private insurers to market policies and adjust claims in return for various fees and commissions.
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info