Farmers Insurance exits Florida market

Farmers Insurance has decided to exit the Florida market, which has raised more concerns about the state’s insurance industry

The announcement made on Tuesday revealed that the company would be discontinuing all home, auto, and umbrella policies across the state, impacting approximately 100,000 homeowners

A troubling trend

This marks the fourth insurance company to withdraw from the Florida market within the past year, further exacerbating the ongoing challenges faced by the state’s insurance sector

Florida’s insurance costs have surged in recent years due to the financial burden of hurricane rebuilding and recovery efforts, resulting in residents being burdened with the highest premiums nationwide

Farmers explains decision to exit

Farmers Insurance justified its decision, stating that it was necessary for effectively managing risk exposure

The company clarified that approximately 30 percent of its overall policies in Florida would be affected, with the exception of policies issued through subsidiaries

Affected customers will receive notifications outlining the termination dates of their coverage and alternative options for replacement policies

The departure of Farmers Insurance from the Florida market highlights the precarious state of the insurance industry