Florida’s Insurance crisis worsens

by | Jul 19, 2023 | Homeowners Insurance

Florida leaves residents few options, high costs.

Now that Farmers Insurance has decided to join more than a dozen other Florida insurance companies that have stopped writing home insurance policies in the state, alongside at least six companies that became insolvent in 2022. Florida now has over 200,000 homeowners scrambling to find new coverage in a dwindling yet critical industry.

In a statement to NBC News, Farmers Insurance confirmed it has stopped writing new homeowners insurance policies in Florida. The news was first reported by The Wall Street Journal.

“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,” a Farmers spokesperson said in an email.

Citizens Property Insurance policies are best for Floridians who’ve struggled to find coverage through a traditional insurance company — but rates are nearly 3 times the national average. Citizens makes money through rates and premiums, and this month, the group requested the “maximum rate increase allowed,” with the average cost to customers expected to rise by as much as 12%.

Michael Peltier, Citizens’ media relations manager, said that, at the moment, the company has enough financial cushion to absorb the new policies, assuming the rate increase is approved. But if enrollment growth continues, Peltier said Citizens may be forced to levy additional assessments not just on its own policyholders but also anyone with any kind of insurance in Florida, including auto.

The Florida Officer of Insurance Regulation lists insurance companies still in operation around the state, and the agency allows homeowners to view prospective prices online.

Here are the homeowners insurance companies still active in Florida: