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Thursday, July 13th, 2023

Farmers Insurance pulls out of Florida, affecting 100,000 policies

Author:     IRINA IVANOVA
Source:     CBS News
Publication Date:     JULY 12, 2023
Link: Farmers Insurance pulls out of Florida, affecting 100,000 policies
Stephan:  

If you read SR regularly you know that for several years now I have been counseling readers who are coastal residents to explore what climate change is likely to do to their immediate area, and to watch what the insurance companies are doing because there will come a point where it will not be possible to get insurance for your property, or the insurance you have will be cancelled with no chance of renewal. That will be followed by a massive collapse of real estate values because you can not buy property and get a mortgage without insurance. Well, that time is nigh in Florida. About half the state is going underwater in the coming years, and no one follows this more closely than insurance companies. And, Farmers, one of the country largest insurers has just announced they will no longer insure property or even cars, in Florida. They are also limiting what they will cover in California in areas with major forest fire issues. Other companies will follow Farmers so if you own coastal property look at what the future holds and sell before the collapse.

Central Florida Flooding in 2023 Credit: CNN

Farmers Insurance said Tuesday that it will no longer offer coverage in Florida, ending home, auto and others policies in the state in a move that will affect tens of thousands of residents. 

Farmers becomes the fourth major insurer to pull out of Florida in the past year, as the state’s insurance market looks increasingly precarious amid a growing threat from extreme weather.

“We have advised the Florida Office of Insurance Regulation of our decision to discontinue offering Farmers-branded auto, home and umbrella policies in the state,” Farmers spokesman Trevor Chapman said in a statement to CBS Miami. “This business decision was necessary to effectively manage risk exposure.”

Under Florida law, companies are required to give three months’ notice to the Office of Insurance Regulation before they tell customers their policies won’t be renewed.

Samantha Bequer, a spokeswoman for the Office of Insurance Regulation, told CBS Miami that the agency received a notice Monday from Farmers about exiting Florida. The notice was listed as a “trade secret,” so its details were not publicly available Tuesday. 

Farmers said the move will affect only company-branded policies, which […]

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1 Comment

  1. Albus Eddie on Friday, July 14, 2023 at 5:29 am

    This is good news as the market is finally providing realistic feedback regarding risk. The question will be: Can wealthy elites short-circuit this process and put the taxpayer on the hook as a “insurer of last resort”.