Farmers Insurance Group leaving Florida

Florida’s property insurance crisis continues to worsen. Farmers Insurance Group is leaving.

Close to 100,000 Florida homeowners will be impacted by this withdrawal. Those with Farmers-branded auto and umbrella insurance policies will also have to go shopping.

“Over the last 18 months, 15 Florida property insurers have placed a moratorium on writing new business. Four companies including Farmers Group have announced voluntary market withdrawals, and seven order insurers have been declared insolvent,” said Mark Friedlander, Florida Spokesperson of the Insurance Institute.

A Farmers spokesperson told WINK News Consumer Reporter Andryanna Sheppard in a statement, “We have advised the Florida Office of Insurance Regulation (OIR) of our decision to discontinue offering Farmers-branded auto, home, and umbrella policies in the state. This business decision was necessary to effectively manage risk exposure.”

Florida law requires insurance companies to give the OIR 90 days’ notice in writing if it wants to stop writing insurance in the state and give the reason why. Insurers must also give their policyholders 120 days’ notice before the effective date of nonrenewal.

The Office of Insurance Regulation (OIR) told WINK News it “received a market reduction notice from Farmers [Monday] and is reviewing the notice in accordance with applicable Florida statutes.” Insurance Commissioner Michael Yaworsky wrote in a letter to the company Tuesday, “We are disappointed by the hastiness in this decision and troubled by how this decision may have cascading impacts to policyholders.”

In June, Farmers told Andryanna it paused writing new policies in Florida for the same reason. “With catastrophe costs at historically high levels and reconstruction costs continuing to climb, we implemented a pause on writing new homeowners policies to more effectively manage our risk exposure,” a spokesperson wrote in a statement.

Chief Financial Officer Jimmy Patronis tweeted his office is “exploring every avenue possible to hold them accountable.”

Andryanna reached out to Patronis’ office asking how it plans to hold Farmers accountable. She was pointed to OIR, which Patronis oversees.

This announcement only impacts those with Farmers-branded policies. A spokesperson wrote in a statement, “Farmers offers insurance through several different brands, and this decision applies only to policies issued through our exclusive agency distribution channel. There is no impact to 70% of policies currently in force for customers in the state, including Bristol West^®, Foremost Signature^SM, Farmers GroupSelect^SM, Foremost Choice^® and Foremost^®-branded policies. Such policies 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 advised of options for replacement coverage.”

Friedlander says policyholders should not panic, “It could take a year before you receive a non-renewal notice. Those with open Hurricane Ian claims should not panic either.”

“For the Farmers customers that are impacted by [Tuesday’s] decision, you will get a formal written notice from the company 120 days in advance of your policy renewal date,” Friedlander added. “So nobody’s policy is getting cancelled right away. Nobody’s policy is getting canceled midterm.”

Policyholders are safe this hurricane season but are advised to speak with their insurance agents.

In a statement to WINK News, Insurance Commissioner Michael Yaworsky said the Office of Insurance Regulation is, “Disappointed by the hastiness in this decision and troubled by how this decision may have cascading impacts to policyholders.”