Farmers Insurance became the latest property insurance company to pull out of Florida on Tuesday despite repeated efforts by Republican Gov. Ron DeSantis and the Legislature have made to try to calm the volatile market that is making homeownership less affordable.
Farmers informed the state that it is discontinuing new coverage of auto, home and umbrella policies. The company said in a statement that the decision affects policies issued through its “exclusive agency distribution channel.” It said there will be no effect on 70% of current policies in Florida.
In a statement, Florida Chief Financial Officer Jimmy Patronis criticized the company’s decision.
“I’ve always said that when big decisions are made on insurance – the policyholder is rarely in the room – and unfortunately Farmers Insurance proved me right. I have asked my team to put their heads together in holding Farmers Insurance accountable to Florida policyholders. I want additional scrutiny on this company,” the statement read. “Therefore, I have directed my Division of Consumer Services to conduct a deeper dive into Farmers Insurance complaints – and if those complaints hit a certain threshold, it will trigger market conduct investigation that could lead to fines being levied against the carrier.”
Critics of DeSantis, who is seeking the Republican nomination for president, say he has focused too much effort on divisive cultural issues and not enough on making housing and insurance more affordable. The Legislature has grappled with the issue each of the last two years, including a special session in December.
Most of the focus has been on shielding insurance companies from lawsuits and setting aside money for re-insurance to help protect insurers. The Office of Insurance Regulation sent a letter to Farmers responding to the notice that it doesn’t plan to write new policies.
“Florida’s leaders have stepped up to the plate by delivering historic reforms to Florida’s property insurance market to ensure competitiveness and increase consumer choice,” Insurance Commissioner Michael Yaworsky wrote to the company.
