More than 1,200 Suwannee County residents will soon have to look elsewhere for homeowners insurance in the wake of State Farm’s announcement Tuesday that it will quit offering the policies in Florida. The decision follows state regulators’ refusal last year to grant the company a 47 percent rate hike.

“We can’t specifically comment, but it’s certainly a serious issue and we are working consistently to give our customers information and advice,” Live Oak State Farm agent Derek Loadholtz said Wednesday afternoon.

The company blamed the decision on recent record payouts following a series of devastating hurricanes in the state. The move will not affect those with auto, or life and health insurance policies through State Farm.

The Florida Office of Insurance Regulation (FOIR) must approve State Farm’s decision to withdraw homeowners coverage from the state. FOIR has 90 days to act on the request. If approved, State Farm will then be required to give policyholders 180 days notice before it begins refusing to renew policies.

State Farm said it plans to phase out homeowners policies over a two-year period.

“This is not an action we wanted to take, but one we must take given the realities of the Florida property insurance market,” Jim Thompson, president of State Farm Florida, said in a press release. “We regret the impact this will have on our customers, employees and agents in Florida.”

Governor Charlie Crist was not especially happy with State Farm’s decision.

“They probably charge the highest rates in the state, anyway,” he was widely reported as having commented Tuesday at a press conference. “Floridians will be much better off without them.”

In a statement released on the FOIR Web site, Florida Insurance Commissioner Kevin McCarty said he was not surprised by State Farm’s decision.

“Although this is disappointing news for Floridians, who have been loyal customers of State Farm, we are not surprised by State Farm’s decision to stop offering all property insurance in Florida,” said McCarty. “We will carefully review State Farm’s intended plans to ensure that they are in compliance with Florida law; and we will explore all legal options as well.”

Documents prepared for the Democrat by FOIR show that 1,262 State Farm policies are in effect in Suwannee County. One-thousand sixty-one of those are for site-built homes, 144 are for mobile homes, 55 are for renters and two are for apartment buildings. The total for premiums written is $1,405,693. The total value of the insured structures is $424,242,973.

State Farm insures about 1.2 million Floridians. More than 703,000 of those policies are for site-built homes.