Another property insurer is dropping coverage in Florida.
Farmers Insurance will stop writing new business and not renew its existing “Farmers-branded” automobile, home and umbrella policies in the Sunshine State, the company said Tuesday.
On Monday, Farmers sent notice of its plans to the Florida Office of Insurance Regulation, which is reviewing it. Insurers must give the office 90 days’ notice if they want to discontinue writing business in Florida.
“This business decision was necessary to effectively manage risk exposure,” the company said in a statement.
Floridians on average are paying about $6,000 for their yearly home insurance premium, an increase of 42% compared with last year, said Mark Friedlander, spokesperson for the Insurance Information Institute. By comparison, the average annual premium in the U.S. costs $1,700.
The move will impact 30% of the company’s business in Florida, or roughly 100,000 policies. Policyholders affected by the decision are required to be given 120 days’ notice that their coverage will not be renewed.
Farmers joined Bankers Insurance, Centauri Insurance and Lexington Insurance, a subsidiary of AIG, in withdrawing from the market since last year, he added.
Farmers pulling out of Florida leaves residents few options, high costs
Florida Insurance Consumer Advocate Tasha Carter called the decision from Farmers Insurance “devastating for all Floridians.”
“It creates a ripple effect – it directly impacts Farmers’ current policyholders who will be thrust into a position of having to find new insurance potentially during hurricane season and into a homeowners insurance market that is significantly limited in availability and affordability,” Carter said.
Mel Montagne, president of Fair Insurance Rates in Monroe, a grassroots activist group in the Florida Keyes, who spoke out against the most recent rate increase proposed by Citizens Property Insurance, said he anticipates that this will result in increased insurance rates and more…
Read the full article here
Leave a Reply