State Farm has been more than patient with the State of Florida despite suffering huge losses in Florida over the past five years. Insurance companies are not non-profit organizations. If they do not make money, they have no reason whatsoever to offer coverages to anyone. Insurance pricing is based on risk, actuarial factors, and actual past losses. The risks in Florida are absolutely huge and the present rates for homeowner policies are woefully insufficient to cover these risks.
Many companies have shut down writing homeowners coverage in the State of Florida for the simple reason that losses and future risks far outweigh any potential for profitable sound business operations. The State Farm operating company in Florida is a separate entity from the national State Farm corporation. It has sustained a net loss of $750 million from prior claims which it has been unable to pay back to its parent due to inadequate rates. For every $1 taken in on premiums by State Farm they are paying out $1.21 in claims. Would any sane person take $1 dollar and give out $1.21 to anyone? Obviously not.
The State of Flordia has been outright hostile to insurance companies who have lost a great deal of money (billions) in the State, and now will simply shut down. State Farm will be one of the first major companies to exit and many others will follow. No insurance company will stay and write coverages on residential property at a loss. The governor is an utter moron and he will get exactly what he deserves - no insurance at any price in the State if he and the legislators keep up their stupid attacks on insurance companies.
This entire issue can be simply solved by allowing insurance companies to charge whatever they deem appropriate and letting the market decide which companies get the business. In the absence of that common sense approach, look for many more companies to just pull the plug on Florida.