Thousands of Floridians are Forced to Find New Insurance After Farmers Insurance Pulls Out

Farmers Insurance will stop offering its policies including home, auto and umbrella policies in the state of Florida, forcing thousands of residents to find a new insurance provider.

According to CNN, the company made the “business decision” that was “necessary to manage its risk exposure in the hurricane-prone state.” Farmers Insurance currently serves 100,000 customers in Florida.

This might not come as a surprise considering national insurers do not have a major presence in Florida. Mark Friedlander, a spokesperson for Insurance Information Institute told CNN, “Over the past 18 months in Florida, 15 home insurers have placed moratoriums on writing new business, four carriers have announced plans to voluntarily withdraw from the market and seven companies have been declared insolvent.”

Florida’s low elevation makes the state highly prone to hurricane damage. Last year, Florida weathered Hurricane Ian, the most expensive storm to ever hit the state. These factors pose major risks for the insurance market and contribute to the crisis happening now.