Posted on 07/11/2023 9:02:34 AM PDT by DFG
Another insurer is leaving Florida, where homeowners are paying more than ever for insurance, despite the state’s attempt to shore up the wobbling market.
Tuesday, Farmers Insurance informed the state it was dropping home, auto and umbrella policies across Florida, potentially affecting tens of thousands of people. It’s the fourth company to leave the Florida market in the last year — most citing rising risks from hurricanes. Farmers, a large company with a national presence, also has reduced new business in California, citing extreme weather and wild fire threats.
“This business decision was necessary to effectively manage risk exposure,” the company wrote in a statement.
Farmers said the decision to withdraw affects about 30% of its overall policies around the state, but not ones issued through its subsidiary companies. Those — including auto insurer Bristol West and home insurer Foremost — are unaffected.
The company declined to speak on the record about how many people would lose coverage. Figures from Florida’s Office of Insurance Regulation show that Farmers has about 93,000 current home and auto policies, but an industry source suggests that number is currently closer to 100,000.
(Excerpt) Read more at yahoo.com ...
Is Rob DeSanctus addressing this issue?
Ouch! I would think that’s going to hurt a lot of people.
A new position for hunter perhaps? Fedsure program czar?
Might Florida be forced to issue “risk pool” coverage to residents if they eventually cannot get it in the marketplace?
Like states do for uninsurables due to high risk from many accidents tickets etc? Albeit at a whopping rate...
“However, financial autopsies of failed insurers in Florida regularly point to excessive payouts, high salaries and fees to affiliated companies as the main problem that leads to bankruptcy.”
naturally, the kommies at the corporate fascist leftist media blame eeeevil corporations, instead of hundreds of billions of dollars of destruction by hurricanes ...
Very very bad news.
This needs to be fixed.
Looks like he is.
Mine virtually doubled over past two years. No claims over 26 years here. My last comment to the agent one more dime and I self-insure. My home is so hardened from wind damage, it would take a bazooka to damage it. Flood is also up but not wise to cancel it because as the punch line to the joke goes, “harry how do you start a flood”.
While I understand hurricane and storm risks, you’d think a growing population does not just mean more homes at risk, but more premium payers as well. So what is driving up the rates cannot be “the climate” or even the weather.
Why is our governor spending all this money campaigning for president instead of helping his constituents in Florida? He cannot win the presidency unless he tries to help us with this problem. Florida will be an enclave of the Rich and maybe that’s what he wants.
Don’t let homeowners rebuild beside the beaches. If a hurricane knocks down your beachfront home, you will have to build elsewhere. Otherwise, the home remains at great risk.
That’s not the only state. My minimum insurance went from abt $919.00 to $1148.00 on a house built in 1973 for $19,000. Paying for other dwellings, etc, etc. Don’t have other dwellings. This is BULL! Plus any deductible. Almost said, screw it!
So you think there is some place in the US that does not have natural disasters? Childish thinking.
Seems like the insurance companies would increase premiums or set lower payout limits rather than refusing to ensure.
A positive side effect is that the insurance problem will make the homes more affordable to buy.
First, the insurers left California, then they left Florida, next they will leave other Gulf Coast states, and then work their way up the east coast.
Obviously hurricanes are an issue on the Homeowner’s side, but I have to think Florida’s PIP/No Fault Auto policies have contributed to this as well...it’s a system ripe for abuse.
Florida already does that...things were getting a little better as insurers began to move in, but these exits are hurting again.
Our premium went up about 40% this year
—> Don’t let homeowners rebuild beside the beaches.
As long as taxpayers don’t foot the bill, I’m ok with anyone paying for risks they are willing to pay themselves
No one understands insurance, the idea is that you take in premiums but you pay nothing out. I have homeowners insurance, car insurance, etc. Not one of them has ever paid out a claim.
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