In spite of the state’s efforts to stabilize the shaky market, homeowners in Florida are paying higher insurance premiums than ever.
Farmers Insurance notified the state on Tuesday that it was discontinuing its home, auto, and umbrella insurance throughout Florida, potentially affecting tens of thousands of individuals.
Florida Residents Lose Farmers Insurance Coverage
It is the fourth business to leave the Florida market in the past year, with increased storm risks as the main justification.
Farmers, a sizable corporation with a presence across the country, has likewise scaled back new operations in California due to the state’s harsh weather and wildfire dangers.
Farmers claimed that only insurance issued by its subsidiary companies are impacted by the withdrawal, which only affects around 30% of all policies across the state.
These companies, including home and vehicle insurance providers Foremost and Bristol West, are unaffected. About how many people might lose coverage, the firm refuses to comment in the open.
Farmers presently has roughly 93,000 house and vehicle insurance policies, according to data from Florida’s Office of Insurance Regulation, but a source in the business believes the actual number is closer to 100,000.
The day before Farmers announced their choice, Florida’s Chief Financial Officer Jimmy Patronis tweeted that his office had not spoken to Farmers and threatened to use every legal means to hold them accountable for leaving Florida.
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Homeowners Face Crisis
Insurance companies are obligated by state law to provide clients 120 days’ notice before canceling their policies.
Customers who receive a notification are urged to get in touch with their agent right once to find substitute coverage, the office stated in a statement.
Later on Tuesday, the agency officially formally reprimanded Farmers for not informing the office in advance of their decision to leave the state.
Florida Insurance Commissioner Michael Yaworksy also mentioned in a letter that Farmers decided to depart Florida “independently” of the state’s insurance changes.
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