The Florida insurance market took a hit Tuesday, as Farmers Insurance said it will end residential, auto and umbrella policies in the state, forcing tens of thousands of customers to look elsewhere for coverage.
The company said the move will affect only Farmers-branded policies and will not affect policies sold in the state by subsidiaries Foremost and Bristol West. It indicated the Farmers-branded policies make up about 30 percent of the policies sold by the affiliated companies in Florida.
“We have advised the Florida Office of Insurance Regulation of our decision to discontinue offering Farmers-branded auto, home and umbrella policies in the state,” Farmers spokesman Trevor Chapman said in a prepared statement. “This business decision was necessary to effectively manage risk exposure. Farmers offers insurance through several different brands, and this decision applies only to policies issued through our exclusive agency distribution channel.”
Farmers will not write new policies or renew existing policies. The non-renewals will play out over several months.
It was not immediately clear Tuesday how much of an impact the Farmers move will have on Florida’s troubled property-insurance market, where insurers have dropped hundreds of thousands of policies and raised rates during the past two years.
A source told The News Service of Florida that about 100,000 Farmers policies across the residential, auto and umbrella lines of business could be affected, though a breakdown by policy type was not available.
A state report indicated that, as of Dec. 31, Farmers Casualty Insurance Co. had 5,835 residential policies. By comparison, Foremost Insurance Co. and Foremost Property and Casualty Insurance Co. combined for nearly 62,500 residential policies, according to the report.
Bristol West sells auto insurance.
Saying he had heard rumors that Farmers might pull out of Florida, state Chief Financial Officer Jimmy Patronis on Monday blasted the company.
“If that’s true my office is going to explore every avenue possible for holding them accountable,” Patronis said in a Twitter post. “Don’t get to leave after taking policyholder money. Can’t write auto if you’re not doing homeowners either.”
That drew a retort from Rep. Hilary Cassel, D-Dania Beach, an attorney who represents policyholders in lawsuits against insurers.
“The only time your office has held an insurance company accountable is when you’re looking to collect a campaign check,” Cassel tweeted.
Samantha Bequer, a spokeswoman for the Office of Insurance Regulation, said in an email that the agency received a notice Monday from Farmers about exiting the market. The notice was listed as a “trade secret,” so its details were not publicly available Tuesday.
State law requires Farmers to give 90 days’ notice to the office before it can inform customers that policies will not be renewed.
Farmers also is limiting homeowners coverage in California, according to numerous recent media reports.
–Jim Saunders, Jim Turner, News Service of Florida
Laurel says
Great job DeSantis! You and your Republican minions have worked hard on our sexual identities and forming Moms for Illiteracy banning books, pushing your supposed Christian ideals on us while taking money from public schools, fighting Disney World (why again?), trafficking migrants and all the other meaningless things you have tackled.
Now, what are we Floridians gonna do about the real issues we need to focus on that government is neglecting? Oh yeah, VOTE THEM OUT!
Walt P Rubel says
It is time for the Governor to stop wasting his time on trying to beat Trump and to get back to being the one we elected to make Florida a better place to live.
Mary Jane says
He is the worst Governor the State of Florida has ever had. He needs to go and be a teacher somewhere, education and banning books is all he cares about and wasting taxpayers money flying immigrants all over the country. He is no way political material. He only won the Governor’s position because of Trump that is why he is so afraid to upset his Master. DeSantis is no body without hanging on Donald’s apron strings.
Shark says
Time for meatball to WAKE up !!!
Ed says
Ask the easy question, why would any for profit business stop providing services/products anywhere?
Because it’s not profitable.
Reform the tort laws to prevent frivolous law suits. Reduce nonsense claims and drive out the fraud.
Every insurance claim that fits the above descriptions cost every policy holder increased premiums.
It’s not a republican caused problem. Get real.
Jim says
No offense but the Republicans hold power in all parts of the Florida state government. So they own this problem. It’s been coming for years and the people holding office have done virtually nothing to turn this situation around. It’s past time for the state government to address the insurance problems we have here. So since the Republicans are in power, I expect them to address this issue NOW.
It’s already probably too late…..
Sherry says
Now Ed. . . you know that “good” governors do lots of negotiations with the owners of vital services for the benefit of their constituents. You also know that DeSantis should have been much more focused on the needs of Floridians instead of forcing through legislative decisions in order to bolster his standing with right wing extremists in preparation for his “lame” attempt to run for President. The majority of “thinking” people are sick and tired of the “culture wars” ginned up by DeSantis and his idiot cohorts.
can'tfoolme says
Thank you, Ed. Finally, a common sense, rational comment. The insurance companies started canceling policies and pulling out of California over a year ago. A company can only assume so much risk and/or fraudulent claims before they have to pull out to avoid bankruptcy or raise their rates thus pricing themselves out of the market. Which choice is preferable? And yes, thank the careless and the fraudsters.
Ray W. says
Unfortunately, both can’tfoolme and Ed are less than completely correct in their assertions, mainly because neither mentions the biggest issue. Florida’s homeowners insurance companies are having difficulties obtaining reinsurance coverage, not just because of possible frivolous lawsuits (mostly involving claims of roof damage by roofing companies that tell homeowners that their roof needs repair and then gets the homeowner to sign over to the roofer the right to sue the insurance company if the insurance company inspects the roof and finds no damage) and possible fraudulent claims, but also because of climate change and the inability to adequately or accurately predict the level of potential damage from an ever changing storms outlook. No reinsurance company in its right mind would offer reinsurance coverage to Farmer’s when the likelihood of a monster storm hitting Florida remains significant and unpredictable.
The political movement to reform the legal system has gained traction over the years. The problem with reform is that everyone has the basic right to an unimpeded access to the courts. Any limitation on that basic right requires extremely precise and reliable evidence to support that limitation. Since people have long been capable of lying for financial gain, the courts closely scrutinize those who are willing to testify to a House or Senate committee that is holding hearings on the issue. For example, years ago Florida’s legislature held a number of hearings on the medical malpractice “problem.” Committees took testimony from a number of witnesses, some of whom claimed that high medical malpractice premiums were driving doctors from the state. Others claimed that premiums would drop if Florida reformed the malpractice system. Others testified of fraudulent claims and frivolous lawsuits. Florida’s legislature then passed reforms that limited recoveries in medical malpractice cases. Several years went by while lawyers gathered relevant data and challenged the testimony of the witnesses. It turns out that premiums did not go down after the bill was signed into law; they kept rising. Florida’s medical malpractice insurance companies immediately reported record profits. And the testimony that doctors were leaving the state turned out to be false. Finally, a study of alleged fraudulent claims showed that the numbers of such claims were far less than that claimed by the witnesses. Florida’s Supreme Court, finding that the legislation was based on less than fully accurate testimony, declared the statute unconstitutional. There are limits to legislative powers to take away citizens’ rights to sue and Florida’s reforms turned out to be based on falsehoods.
I would agree more completely with both commenters if they had focused on homeowners who lie on their applications to obtain insurance coverage, as opposed to fraudulent lawsuits. Homeowners giving false statements to insurance companies for the purpose of obtaining lower insurance premiums seems to be the bigger problem.
Ed and can’tfoolme need to focus on the fact that not a single legislator in Florida takes an oath to tell the truth when he or she is sworn into office. Please stop listening to politicians. They have had decades to fix alleged false or fraudulent lawsuits and done very little in that time. Yet, they keep spreading the word that it is a huge problem. It is a problem, but just not as big a problem as those who have a financial or political stake that will be satisfied by exaggerating the level of the problem.
Laurel says
Thanks again, Ray. I especially enjoyed the comment on another article explaining liberalism v. socialism. I’m still learning! :)
Meanwhile,
How about the lawyer on the billboard who is rolling up his sleeve while still wearing his jacket. Too funny!
Laurel says
DeSantis did just what you said by making it harder to sue insurance companies. How’s that working?
Ed says
Laurel,
House bill 837 was just signed on March 24….really?
At least he did something because Florida is a litigious hell hole…fact!
Laurel says
Ed: Again, how’s that working? Bye, bye Farmers. They’re not waiting around to see how, at least, DeSantis did something.
Ed says
Working well, State Farm referenced the bill and stated that it was a primary reason why they are staying and in fact doubling down on Florida.
Check the facts.
Even you have to admit it would take longer then 90 days for house bill 837 needs to be digested.
Laurel says
Ed: Even you have to admit that AAA is now pulling out too.
Ed says
Not leaving Florida, they are not renewing “a very small percentage” of policies. They are actively writing new policies here.
Insurance Journal news-July 17
The dude says
Maybe instead of tilting at windmills, burning books, and flying immigrants from other states to other states, the Governor should be working on things that actually affect folks who actually live in Florida.
For Real says
DeSantis rides again, he isn’t a Governor he is too busy running around the country with his wife and kids trying to convince people he is qualified to be President, which we know he is not qualified even to be a Governor.
Businesses are leaving the State, immigrants the pick farm products are leaving the State which will raise produce prices. He made up this Woke crap to try to make everyone think he is another mini Trump.
He will end up polishing Trumps golf clubs.
Nephew Of Uncle Sam says
Remember Renner and Hutson, your Representative and Senator, did nothing about this along with the MIA “governor” who pulls their strings. Meanwhile they continue to play their imaginary “woke war” at the expense of citizens, business’ and tourism. Make sure you remember what they did when you go to Vote, don’t say “they brought money to the area” when most of that was likely Federal Dollars they won’t mention.
Dave says
Thank you DeSantis for NOT DOING anything. We will really remember your sorry ass at election time.
And then I see this
: Citizens wants its rates to go up by double digits. Will insurance regulators agree?
Pogo says
@A horse is a horse, of course, of course
But you can talk to a horse — just be sure which end of the horse you’re speaking to. And which end of the horse is speaking a reply, or spoke to begin with.
Now I repeat what I shared at the time it was originally published:
Was the solution to Florida’s insurance crisis found 15 years ago?
A group of volunteers had clout and an idea.
Then they ran into Tallahassee politics.
By Lawrence Mower Times staff
Published March 2|Updated March 2
“TALLAHASSEE — Florida’s property insurance market was in freefall in 2006 after a series of hurricanes. Premiums were rising. Insurers were going out of business or threatening to leave the state.
In response, a group of St. Petersburg businessmen and lawyers came up with a sweeping solution: Have the state offer hurricane insurance. Let private insurers offer everything else.
Armed with data and political connections, group members flew private planes to Tallahassee on repeated trips to meet with then-Gov. Charlie Crist, lawmakers and the state’s insurance regulator.
Instead of being welcomed, they found their idea was “a political hot potato,” one member said.
Although the dozens of small insurance companies that dominated Florida’s market were struggling to pay out storm claims, the group’s plan would have also stripped the companies of the enormous profits they earn in storm-free years. Those companies are major political donors to Florida’s elected officials.
Roughly 15 years later, Floridians are again faced with rapidly rising premiums and a slew of insurance companies going insolvent, this time after hurricanes Ian, Michael and Irma. And the idea those St. Petersburg residents raised all those years ago is being taken up by some new faces…”
https://www.tampabay.com/news/florida-politics/2023/03/02/insurance-premiums-legislature-idea-property-hurricane/
Okay, go on back to sleep, or arguing with goddamn liars, fools, misinformed trolls, and whatever else wanders, creeps, or slithers in.
After all, it’s Flaw-a-duhtown…
Jimbo99 says
This all started in 2021. The roofing companies were wandering the neighborhoods luring homeowners into “getting a free roof on an insurance claim based upon wind damages” I don;t recall a Hurricane even remotely affecting Flagler County in 2021.
https://en.wikipedia.org/wiki/2021_Atlantic_hurricane_season
That’s when all the fraud & abuse of lawsuits started to happen, under the Biden-Harris. So what happened in 2022 with Ian & Nicole was nearly 2 years of folks with older roofs trying to get a free roof on a wind damage or hurricane damage. For an insurance company to be required to replace a roof 25% or more of the roof would need to be damaged. Roofing companies knew this. And the insurance companies were gouging homeowners for $ 3-4K renewals for older roofs. Those were the lies of “Build Back Better” Joe Biden.
Going back to 2020, recall that the roads & Belle Terre lighting, that was all a Trump funded build, not a Biden build. Biden only tried to steal the thunder of credit for any of it. So here we are in 2023, roads need to be repaved again. it’s all the growth & increased traffic. And Flagler/Palm Coast is looking for ways to gouge taxpayers for the next road repaves. It is what it is. Own Biden’s short funding on rebuilding Americas infrastructure. Sooner or later Biden has to take credit for the inflation and the fact that the seed money was a day late & millions of dollars short. The Flagler pier rebuild, the bulk of that funding was 2016 & 2017 Government funding under Trump, that Flagler Beach is only just now getting to a point where the pier will actually be demolished & rebuilt. The pier was being rebuilt in 2024, Ian & Nicole storms accelerated that timeline. As I understand the last reads, the pier has essentially been closed as condemned & unsafe. Imagine how stupid leadership would have to be to buy land & rebuild infrastructure in Biden’s Inflationary Recession, worst ever in American history. Timing is everything in this world. It’s comforting to know we have a pedestrian bridge & bike paths that crosses FL-100 and winds thru the swamp & forest.
Dennis C Rathsam says
Time to move….Between the forever rising taxes, and the price of insurance, if you can find it. I guess its time to find another paradise. What was once an affordable place to live, quiet,& peacefull has now raised its ugly head. Peacefull no more, Quiet…forget about it. Traffic is a new way of life, here in P/C. And the sadest thing about it all, it was preventable. We put are trust into our mayor & city council and they destroyed the very reason people moved here in the first place. Like I stated before about Hazel Green Alabama, seems to be a great alturnative to Fl. Madison Miss, is another place, retirees can live in peace,comfort without the high price of living in Fl. Check out the these two towns…Youll be very surprized what U can afford, without the tourists bullshit. I hate to leave my home here, I thought Id die here, fishing, watching the deer, rabbits, panthers & bears playing around the lake in my backyard. But that was long ago, Im lucky if I see a deer now a days. Seems they all left, I guess animals are smarter than humans! Fish were all over, Bass, Garrs, Crappie,Catfish…It was great to jump in my boat to go fishing, sometimes Id just fish from the dock, just to enjoy nature at its best. What ever I caught I threw back, it is and was great fun. Now in the twilght of my life, Im forced to give up my home, my friends & family….All in the name of progess.
Laurel says
Dennis: I have to agree with you, as I’ve watched it all my life. I grew up in Ft. Lauderdale. Though it was a populated city, it grew from the “Where the Boys Are” crowd to something barely recognizable. Even though both my husband and I knew every inch, when we went back later, we actually got lost downtown! A time before that, my friend, who I went to school with, and I took a wrong turn onto a new I-95 ramp, and found ourselves headed to Perrine! We never imagined it would get that bad.
When I first flew out of Ft. Lauderdale Airport, you could pull up to the front door and park. Then walk straight up to the desk to get your ticket. That was it. Don’t know if you’ve been there lately…
New people here don’t know or care. They talk about this place is like “old Florida” but they don’t have a single clue of what old Florida was like. They don’t know what they are replacing here. They can look at photos. The Hammock alone has more than 520 vacation rentals! Gee, just what we needed. Congestion and blacktop. Old Florida my ass!