Farmers Insurance Cites Florida Hurricanes For Dropping Upwards Of 100K Policyholders
However, the company added that the business decision would not impact customers who use Farmers’ owned subsidiaries such as Bristol West and Foremost Signature, CNN reports.
“Such policies will continue to be available to serve the insurance needs of Floridians,” Farmers Insurance spokesperson Trevor Chapman said in a statement. “Affected customers will receive notifications detailing when their coverage will end and will be advised of options for replacement coverage.”
The outlet reports a noticeable lack of national insurance companies operating in the Sunshine State, which requires companies to send a 120-day notice to policyholders if their policies aren’t being renewed.
Farmers made up barely two percent of the state’s insurance market, per CNN.
“Over the past 18 months in Florida, 15 home insurers have placed moratoriums on writing new business, four carriers have announced plans to voluntarily withdraw from the market and seven companies have been declared insolvent,” Insurance Information Institute’s Mark Friedlander told CNN. “Currently, there are 18 Florida residential insurers on the state regulator’s watch list due to concerns over their financial health.”
Friedlander added that this is a “man-made crisis,” noting Florida’s legal system promotes excess insurance claim
