Farmers Insurance announced that they’ll be discontinuing their services to Floridians. A spokesperson from the company advised the Florida Office of Insurance Regulation about the decision.
Homeowners have been struggling to find insurance amidst the harsh weather experienced by the state, the insurance market has significantly suffered and taken a toll. Farmers is just one of few insurances to pull out.
OIR spokesperson Samantha Bequer mentioned that they’ve received a notice about it on Monday, but wasn’t publicly mentioned since it was listed as a “secret”. CFO Jimmy Patronis mentioned that if Farmers pulled out, they’ll do anything to deal with the matter.
Unfortunately, it turned out to be true. The Insurance company mentions that only company-based policies will be affected – because of that, major insurance companies Allstate and State Farm stopped issuing new policies.
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Aftermath And Response
Corporations are given approximately three months to report to the OIR before officially informing their customers of the sudden change. They’ll also have to alert their agency to find another insurer to cover for their company insurance.
However, foremost-branded and policies under Farmers won’t be affected. Some remark that several Florida-based insurers have been unable to pay their debts or stopped new business.
Insurance Commissioner, Michael Yaworsky, feels disappointed that they didn’t have a face-to-face conversation with the insurer, but instead were hit with a notice.
Fair Insurance Rate President Mel Montage expected that this will surely increase insurance rates and make homeowners rely on government-operated insurers. The cited reasons for pulling out was because of wildfire season and limits on premium insurances.
Many insurers have pulled out due to being out of business as a result of changing climate and weather patterns. Homeowners need to get a bit creative to find new insurers who are willing to support them, otherwise they’ll be out of business as well.
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