(ConservativeHub.com) – On Tuesday, July 11, Farmers Insurance announced that they would no longer provide its branded home, auto or other insurance policies in Florida.
This is the fourth insurer in the state to stop providing coverage, which means that the decision is likely going to have a negative effect on the lives of thousands of residents. The major insurers that have pulled out of Florida have reportedly done so in response to the growing extreme weather threats.
Trevor Chapman, a Farmers Insurance spokesperson stated to CBS Miami that they have let the “Florida Office of Insurance Regulation” know about their decision to move out of the state. He said that this was a necessary business move in order to reduce “risk exposure.”
Florida law states that companies are required to give a three-month notice to the Office of Insurance Regulation before they are able to inform customers that they will not be renewing their policies.
According to reports, spokeswoman for the Office of Insurance Regulation Samantha Bequer revealed in an email that they originally received notice of the decision on Monday, claiming that the notice had been listed as a “trade secret” which meant that its details were not made public until the following day. The decision is currently being reviewed.
Farmers currently covers 30 percent of policies sold in the state. This means that around 100,000 Florida customers are going to lose their insurance coverage. However, any of the policies that were sold by its subsidiaries, Foremost and Bristol West, will remain unaffected by this move.
Florida is not the only state where Farmers have reduced the number of available policies. They have also only provided limited new policies in California because of the increase in wildfires.
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