Farmers Insurance is the most recent insurer to pull out policies in Florida due to natural disasters. Reports say the company will no longer provide homeowners, auto, or umbrella policies in the state.On July 11, the Farmers Insurance announced its withdrawal from Florida after a notice to the state’s regulatory agency. Reports say the Farmers Insurance is the most recent insurer to pull out of the state due to natural disasters that were made worse by the rising temperature.
According to Valinsky, the Farmers Insurance announced that it will no longer provide homeowners, auto, or umbrella policies in the state. The decision will reportedly affect almost 100,000 current policies and any customers to come in the future. Fortunately, policies under subsidiaries which are around 70% will not be affected at the moment.
Why Farmers Insurance Pulled Out
According to Stelle, the Farmers Insurance is the fourth insurer that has withdrawn its policies from the state since 2022. Apart from the Farmers Insurance, the Lexington Insurance, Centauri Insurance, and Bankers Insurance have also pulled out from Florida.
The withdrawal of these insurance companies is reportedly due to the state experiencing several destructive natural disasters that even imposing costs three times the national average is a high risk. Farmers Insurance spokesperson Trevor Chapman states that the decision was necessary to effectively manage the potential loss from the severe natural disasters.