Amidst rising premiums, Farmers Insurance departs and adds to Florida's insurance market challenges
Florida's insurance market faces yet another blow as Farmers Insurance, a major provider, announces its departure from the state. This exit marks the fourth company to withdraw from the Florida market within a year, leaving homeowners grappling with increasing premiums and limited options. Despite attempts to stabilize the market, the relentless rise in risks from hurricanes continues to impact insurers' decisions.
Farmers insurance joins the exodus
Farmers Insurance, a significant player with a national presence, has informed the state that it will discontinue offering home, auto, and umbrella policies across Florida. The decision potentially affects tens of thousands of policyholders, underscoring the escalating challenges faced by homeowners. Farmers cited rising risks from hurricanes as a key factor in its withdrawal, aligning with other companies that have abandoned the Florida market.
Florida's insurance landscape
The departure of Farmers Insurance follows a mid-June announcement that the company would cease writing new policies in Florida due to the soaring costs associated with hurricane recovery and rebuilding. The state's property insurance market has been mired in turmoil since a series of hurricanes struck in 2017. While legislative reforms have attempted to address the situation, premiums for homeowners have continued to surge, with Florida having the highest property insurance rates in the nation.
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