Farmers Insurance Group stops writing new property policies in Florida
Source: WESH 2
We are almost two weeks into hurricane season. That means now is the time to make sure your property insurance is taken care of.
But we're learning there is just one less option in the Florida market.
"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.
Read more: https://www.wesh.com/article/farmers-insurance-property-policies-florida/44189948
is property insurance now woke?
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Yavin4
(37,182 posts)
mwb970
(12,150 posts)Right-wing aholes worship a "god" whom they made up specifically to agree with them about everything, no matter how horrible and inhuman. Must be nice.
RedSpartan
(1,766 posts)
Drum
(10,678 posts)
AZ8theist
(7,377 posts)Now you can't even insure your house from collapse? Even after unskilled white idiots sort of replace your new roof?
Maybe Repukes should have thought some more on this before they made immigrants felons for being alive.
Way to go, Ron. Your racist stupidity is turning Florida in to a shithole.
This video is in Spanish. Skip ahead to 0:48 to see the difference between "illegal" labor and native labor. It's hilarious:
TexasTowelie
(127,350 posts)
roamer65
(37,953 posts)If they can’t make money in FL, they are OUT.
Why are they out? Because 523 ppm CO2e has made that way.
ruet
(10,278 posts)It's fun to dunk on Florida and all but this is bullshit. Insurance companies want to collect premiums in perpetuity without ever paying a single claim. Insurance is a balance or risk between the insurer and the insured. The insured pay premiums with the understanding that they may never have to file a claim. Insurance companies collect those premiums with the understanding that they may have to pay claims on them. Fuck them and fuck those who support this shit for political reasons.
dalton99a
(94,115 posts)roamer65
(37,953 posts)They should be the first ones we “throw overboard”.
not fooled
(6,680 posts)Is hate an acceptable substitute for property insurance?
Looks as though Florida is about to find out.
C Moon
(13,643 posts)They are saying it could turn into what's going on in Florida.
This isn't the article, but it's close:
https://www.theguardian.com/us-news/2023/may/27/state-farm-home-insurance-california-wildfires
Xolodno
(7,350 posts)State Farm doesn't insure jack shit in the Wildfire zones. There isn't enough incentive for them to do so.
Nor does Allstate. And the rate increases have been capped at 7% a year by the DOI, despite their financials showing they need higher rates.
Now what is interesting, the FAIR Plan (insurer of last resort) filed for almost a 50% rate hike, after acquiescing to the DOI's demands of increasing coverage amounts. If the Insurance Commissioner denies it, I think you will see more companies halt offering coverage. If he gives in, State Farm, Allstate and AIG (they quietly stopped taking new business) will put pressure...as will Farmers and other companies as they are already slowing down new business. I'm guessing the Insurance Commissioner will try to wait this out as he has an election to win. The drawbacks of some state offices of being elected officials.
Xolodno
(7,350 posts)...think it was roughly 10 years ago? Probably wrong, but we all said "WTAF?!". Texas, Mississippi and Alabama were already a pain in our ass (and were working on CAT mitigation strategies...and walked away from Louisiana a few years prior). And shorty before that, we added North Carolina, New Jersey and New York.
Breathed a sigh of relief when they stated the distribution footprint would be small and exposure would be capped when we hit a certain number. I no longer work there, but, I guess they hit the cap, thus the appetite for market share in Florida is done.
People forget, insurance is a product a company sells that comes back to bite you in the ass later. Florida was lucky Farmers entered the market in the first place, but it was made clear, it would be very limited.
keithbvadu2
(40,915 posts)U.S. climate spending dwarfed by what diasters cost us
Who believes in climate change? Insurance companies do.
Even in states far away.
Politicians try to ignore it and trivialize it because they might have to do something.
cstanleytech
(28,471 posts)high risk from hurricanes and I am surprised that there were insurance companies even willing to do business there at all.
DFW
(60,186 posts)From an above-water "We are Farmers. bum bum ba bum bum BUM!"
To a sinking "We were Farmers, blub blub ba blub blub BLUB!"
I wonder if Jonathan Kimble Simmons has been fitted for a diving helmet yet, so he can say "we've seen a thing or two" from 6 feet under water?
SouthernDem4ever
(6,619 posts)They will either try to deny most of your claims or charge exorbitant rates. I still don't get why people think for-profit insurance companies are a good way to serve the public unless you're a shareholder.
HAB911
(10,440 posts)
DownriverDem
(7,014 posts)I have no desire to live in a red state. I don't care about the weather or taxes. From what I hear sales taxes are high in red states and services are less. I love my State of Michigan.
lark
(26,081 posts)That and rent are his favorite things to raise, certainly not anything that would help non-rich folks.
I've lived in FL 35 years and we've had our property insurance cancelled now 3x die to companies refusing to sell policies in the state. We live in an area that almost never gets hit by hurricanes, only once since records have been being kept. Yes, we do get tropical storms, but those don't cause widespread damage and still the companies aren't smart enough to sell by community and want to judge us by the entire state - fuckers!
SWBTATTReg
(26,257 posts)lark
(26,081 posts)It went up a LOT! Grrrr
SWBTATTReg
(26,257 posts)about the other states? So, these companies, who have served Americans for so long, and have accumulated billions of dollars paid to their shareholders, are pulling the buck, and leaving their long-term policy holders high and dry. Somehow, I feel like these insurance companies are abandoning us, that is, they hung around when they didn't have to pay any claims, that is, kept all of the proceeds to themselves, and then when things get rough, they leave the state.
One of the reasons they're leaving is that home prices are escalating way way upwards. From my viewpoint, they've been constantly raising prices too. So this isn't a valid excuse to me.
Heck, in FL, one thing I heard is that every single policy in FL has a $15,000 deductible upfront. What a kick in the you know what.
Ron D. never says anything about this.
melm00se
(5,161 posts)As a broad statement, that is not true.
FL policies, however, are a little different than they are in other states.
My policy has 2 coverage premiums and declarations.
Part I is just like every other insurance policy you see. Regular deductible for regular perils.
Part II is called "hurricane coverage". Hurricane coverage is usually has a deductible of 5-10% of "coverage A" (which is dwelling coverage).
My hurricane yearly deductible is nowhere near $15K nor are the coverages my in-laws have as well as my brother.
As for premiums: mine has jumped approximately 40% over the last couple of years with no claims filed.
Insurance companies down here are a little different. People generally do not have big name company policies (Allstate, State Farm, Amica etc) as they are off the hook expensive. So people go with smaller less known names.
As an example when I moved here:
I had Amica for home and vehicle (and absolutely loved them) so I called them and had an agent get me quotes from other companies.
Amica was something like $3.5k per year for 2 cars.
Travelers, State Farm and USAA were both in the low $2000s/year
My current car insurance is just under $1k/year.
The coverages were identical.
For my home, Amica wouldn't give me a quote, Allstate was damn near $5k/year and USAA said they could work one up for me but said they would not be competitive.
Response to pstokely (Original post)
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It's due to greed.
SpankMe
(3,720 posts)Shouldn't insurance companies simply revise their actuarial tables to increase premiums in high risk areas instead of pulling up stakes altogether? Sure, a premium may go from $1ooo to $19,000 per year. But isn't that better than having no insurance at all?
melm00se
(5,161 posts)is that our state by state regulation of insurance is a killer.
This forces the insurance companies to treat each state almost as a separate subsidiary. So they really can't average costs across the country but only across the state.
There are people who move from FL to just over the state line into GA because the GA insurance rates (even though the old place is 5 miles from the new place) are half of what they were in FL.
Snooper9
(484 posts)nt