Current:Home > ScamsFarmers Insurance pulls out of Florida, affecting 100,000 policies-LoTradeCoin
Farmers Insurance pulls out of Florida, affecting 100,000 policies
View Date:2024-12-24 00:43:12
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 make up about 30% its policies sold in the state. As a result, nearly 100,000 Florida customers would lose their insurance coverage, according to CBS Miami. Policies sold by subsidiaries Foremost and Bristol West will not be affected.
Farmers has also limited new policies in California, which has seen record-breaking wildfires fueled by climate change. Allstate and State Farm have also stopped issuing new policies in the state.
Insurance costs soar with the mercury
The Florida exodus is the latest sign that climate change, exacerbated by the use of fossil fuels, is destabilizing the U.S. insurance market. Already, homeowners in the state pay about three times as much for insurance coverage as the national average, and rates this year are expected to soar about 40%.
Multiple insurers in the state have gone out of business, faced with massive payouts for storms. Meanwhile, warmer air and water are making hurricanes stronger and more damaging.
Florida Chief Financial Officer Jimmy Patronis, who oversees the insurance regulator, tweeted on Monday that if Farmers pulls out, "My office is going to explore every avenue possible for holding them accountable."
- In:
- Florida
veryGood! (7575)
Related
- Drone footage captures scope of damage, destruction from deadly Louisville explosion
- Inadequate inspections and lack of oversight cited in West Virginia fatal helicopter crash
- Did the algorithm kill the pop star? What Chappell Roan, Charli XCX and 'Brat' tell us.
- Gun control initiatives to be left off Memphis ballot after GOP threat to withhold funds
- We Can Tell You How to Get to Sesame Street—and Even More Secrets About the Beloved Show
- Recovering Hawaii still on alert as Hurricane Gilma continues approach
- Carrie Underwood Breaks Silence on Replacing Katy Perry on American Idol 20 Years After Win
- US appeals court clears way for Florida ban on transgender care for minors
- Anti-abortion advocates press Trump for more restrictions as abortion pill sales spike
- Maine workers make progress in cleanup of spilled firefighting foam at former Navy base
Ranking
- Wisconsin agency issues first round of permits for Enbridge Line 5 reroute around reservation
- Pacific Islands Climate Risk Growing as Sea Level Rise Accelerates
- 5 NFL QBs under most pressure entering 2024 season: Does Rodgers or Watson top the list?
- Pennsylvania county broke law by refusing to tell voters if it rejected their ballot, judge says
- All the Ways Megan Fox Hinted at Her Pregnancy With Machine Gun Kelly
- America's Got Talent Alum Grace VanderWaal Is All Grown Up in Rare Life Update
- Connor Stalions Netflix documentary: Release date, how to watch 'Sign Stealer'
- US Open Tennis Tournament 2024 Packing Guide: $5.99 Stadium-Approved Must-Haves to Beat the Heat
Recommendation
-
Pie, meet donuts: Krispy Kreme releases Thanksgiving pie flavor ahead of holidays
-
Does American tennis have a pickleball problem? Upstart’s boom looms out of view at the US Open
-
Maine workers make progress in cleanup of spilled firefighting foam at former Navy base
-
Rent remains a pain point for small businesses even as overall inflation cools off
-
Brianna “Chickenfry” LaPaglia Explains Why She’s Not Removing Tattoo of Ex Zach Bryan’s Lyrics
-
Recovering Hawaii still on alert as Hurricane Gilma continues approach
-
Man charged with making online threats to kill election officials in Colorado and Arizona
-
Receiver CeeDee Lamb agrees to 4-year, $136M deal with Cowboys, AP sources say