Tens of thousands of Floridians will be impacted by Farmers Insurance’s decision to discontinue offering coverage in the state on Tuesday, ending house, auto, and other insurance.
The state’s insurance market appears to be getting more insecure as a result of a rising threat from extreme weather, as Farmers becomes the fourth big insurer to leave Florida in the past year.
Farmers spokesman Trevor Chapman issued a statement saying, “We have informed the Florida Office of Insurance Regulation of our decision to suspend marketing Farmers-branded car, house, and umbrella policies in the state. “To manage risk exposure effectively, this business decision was required.”
According to Florida law, businesses must notify the Office of Insurance Regulation three months in advance before notifying clients that their policies will not be renewed, according to CBS Miami.
“The Florida exodus is the latest sign that climate change, exacerbated by the use of fossil fuels, is destabilizing the U.S. insurance market.”
DeSantis and Republicans continue to deny the climate crisis while tens of thousands of everyday Floridians pay the price https://t.co/laHocndeei
— DJ Koessler (@DJKoessler) July 12, 2023
A warning from Farmers about leaving Florida was received by the Office of Insurance Regulation on Monday, according to Samantha Bequer, a spokeswoman for the office, who talked to CBS Miami. Due to the notice’s designation as a “trade secret,” Tuesday’s disclosure of its contents was not possible.
Farmers claimed that only company-branded plans, which account for around 30% of its policies sold in the state, will be impacted by the change. Bristol West and Foremost subsidiary’s policies won’t be impacted.
In California, which has experienced record-breaking wildfires fuelled by climate change, farmers have also restricted new policies. State Farm and Allstate no longer offer new coverage in the state.
Costs of insurance rise along with the mercury
The Florida migration is the newest indication that the U.S. insurance market is becoming unstable due to climate change, which is being exacerbated by the burning of fossil fuels. Homeowners’ insurance premiums in the state are already around three times higher than the national average, and they are predicted to increase by about 40% this year.
For the most recent updates, see the links below:
- Further South, A Powerful Solar Storm Produces Stunning Auroras
- Two Arrested For Como Mass Shooting That Ki!!ed Three
Due to significant disaster payouts, some insurers in the state have closed their doors. In the meantime, stronger and more destructive hurricanes are occurring due to warmer air and sea.
Jimmy Patronis, the chief financial officer for Florida and the person in charge of the state’s insurance regulator, stated in a tweet on Monday that if Farmers leaves, “My office is going to explore every avenue possible for holding them accountable.”