Amidst the ongoing property insurance crisis in Florida, another major insurance company, Farmers Insurance Group, has made the decision to withdraw from the state entirely. This move comes as a response to the increased risk of catastrophic weather events that have been plaguing the region. Farmers Insurance Group recently filed a “market reduction notice” with the Florida Office of Insurance Regulation, signaling that they will no longer issue policies in Florida. The decision will impact approximately 100,000 policyholders in the state.
Farmers Insurance Group’s departure will have significant consequences for policyholders in Florida. However, according to state law, the company is required to provide a 120-day notice to those policyholders who will be dropped, allowing them some time to secure alternative coverage. It is important to note that this decision only affects policies issued through Farmers’ exclusive agency distribution channel and not policies issued through other insurance groups under the Farmers brand.
In a statement, Farmers Insurance Group explained that the decision to discontinue offering auto, home, and umbrella policies in Florida was a necessary step to effectively manage risk exposure. However, they emphasized that approximately 70% of the policies currently in force for customers in the state will not be impacted. These policies, including those under Bristol West, Foremost Signature, Farmers Group Select, Foremost Choice, and Foremost brands, will continue to be available to serve the insurance needs of Floridians. Affected customers will receive notifications detailing when their coverage will end and will be provided with options for replacement coverage.
Florida’s Chief Financial Officer (CFO), Jimmy Patronis, has expressed his disappointment with Farmers Insurance Group’s decision and stated that the state will hold the company accountable. Patronis highlighted the lack of involvement of policyholders in such significant insurance decisions and called for increased scrutiny of the company. He urged Farmers Insurance Group to reconsider their course of action and offered his contact information as an opportunity for dialogue.
Farmers Insurance Group’s withdrawal adds to the ongoing insurance crisis in Florida. Many other property insurance companies have been raising their premiums, leading to substantial cost increases for homeowners across the state. Citizens Property Insurance, a state-backed insurer, is experiencing a surge in policyholders, indicating the difficulties homeowners face in finding coverage. On average, Florida homeowners pay four times the national average for insurance, amounting to approximately $6,000 annually. The market’s volatility and ongoing challenges have left consumers in a precarious situation.
Farmers Insurance Group’s decision to withdraw from Florida underscores the severity of the property insurance crisis facing the state. Policyholders must now navigate the challenge of finding alternative coverage within the 120-day notice period provided by the company. The situation reflects the larger issues surrounding insurance affordability and availability in Florida. As homeowners continue to grapple with these challenges, it is essential for policymakers, regulators, and insurance companies to collaborate on long-term solutions that provide stability and protection for property owners. Here at Colucci Law Group, we are committed to keeping you informed and updated, as always, where your rights are our fight.
For more information about our property insurance legal services, reach out today. We’d be happy to help you to file your claim or represent you in a lawsuit against your insurance provider.
If you suspect that you are the victim of a bad faith insurance claim denial, we can help. The Colucci Law Group has the resources to assess the validity of your claim at no cost to you. For a free consultation, email us or call our Dunedin office at 727-733-9438. You may also call our Fort Myers office at 239-378-7800. Our team assists victims of bad-faith insurance claims across the state of Florida.