The insurance crisis in Florida is hitting the middle-class family, working community and retirees on a fixed income directly. Hundreds of thosands of residents have lost insurance coverage, and even more have seen policy premiums double. It is not uncommon to find homeowners who are paying more for insurance than their actual mortgage payment. Unfortunately, the situation is getting worse.
Farmers Insurance has notified the state they are pulling out of Florida, will not be writing any additional policies in the Sunshine state and when existing policies expire, they will not be renewed. Home and auto policy rates have already doubled in many areas for many people.
The insurance situation is becoming more unstable by the day, and the future outlook seems even worse amid reports that even more companies are planning to exit.
FLORIDA – 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.
Last month, Farmers said it was only pausing new business in Florida. The company is also limiting new home policies in California, where it is based, according to news reports.
“This business decision was necessary to effectively manage risk exposure,” the company said in a statement.
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.
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