'It's brutal': As premiums continue to soar, another home insurer is leaving Florida

[In It to Win It]

‘It’s brutal’: As premiums continue to soar, another home insurer is leaving Florida

Another insurer is leaving Florida, where homeowners are paying more than ever for insurance, despite the state’s attempt to shore up the wobbling market.

Tuesday, Farmers Insurance informed the state it was dropping home, auto and umbrella policies across Florida, potentially affecting tens of thousands of people. It’s the fourth company to leave the Florida market in the last year — most citing rising risks from hurricanes. Farmers, a large company with a national presence, also has reduced new business in California, citing extreme weather and wild fire threats.

“This business decision was necessary to effectively manage risk exposure,” the company wrote in a statement.

Farmers said the decision to withdraw affects about 30% of its overall policies around the state, but not ones issued through its subsidiary companies. Those — including auto insurer Bristol West and home insurer Foremost — are unaffected.

The company declined to speak on the record about how many people would lose coverage. Figures from Florida’s Office of Insurance Regulation show that Farmers has about 93,000 current home and auto policies, but an industry source suggests that number is currently closer to 100,000.

[Wonder Why]

1. Insurance companies love you when they sell you a policy but only if

you never make a claim against it.