Farmers Insurance Stops Writing New Property Policies in Florida

“Over the past 18 months in Florida, we’ve had 15 companies decide to stop writing new business,” Mark Friedlander, the Insurance Information Institute’s spokesperson, said.

The Insurance Information Institute’s Mark Friedlander says Florida homeowners in search of new coverage have fewer and fewer options, as companies put a pause on new property policies.

That now includes Farmers Insurance Group, who said in a statement:

“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,” Friedlander said.

Even when your insurance bill may be more expensive than ever, Friedlander says insurance companies are now worried they won’t profit if they have to pay out on claims.

And their chances of doing so in Florida are much higher than in many other states.

“The cost of claims for catastrophes is higher than ever before. And we saw this here in Florida play out last year, with Hurricane Ian, we estimate it to be a $60 billion insured loss event,” Friedlander said.

The Insurance Information Institute says the replacement cost for homes has increased 55% over three years, outpacing inflation.

But the skyrocketing costs for consumers are real too.

“Floridians are paying more on average for home insurance today, versus the US average homeowner which is paying about $1,700. So $6,000 in Florida, versus $1,700 in U.S., on average, almost four times as much,” Friedlander said.

Fortunately, Friedlander says that one company pulling new property policies shouldn’t impact rates.

It does impact choices.

Farmers Insurance Group did not answer our questions about when they stopped writing new property insurance policies in Florida and the spokesperson did not say when or if they may resume.

Written by PH

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