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Farmers Insurance reducing coverage in Florida
Josh Cascio reports
TAMPA, Fla. - Farmers Insurance announced it was pulling out of Florida.
Customers like 71-year-old Catherine Schweitzer said she panicked when word came down this week. She’s among roughly 100,000 affected policyholders.
"In the state of Florida there are very few insurance companies that will insure a house that’s nearly 100 years old," Schweitzer shared.
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Farmers Insurance is pulling out of the Sunshine State.
Farmers joins more than a dozen insurance companies that have either gone insolvent or left Florida all together in recent years.
"This business decision was necessary to effectively manage risk exposure," Farmers said in a statement.
In other words, it’s going to save them money. The good news is, the move shouldn’t affect Farmer’s subsidiary companies like Foremost for homeowners insurance.
This year, Florida republicans took steps to try and settle the shaky insurance market, but thus far the impacts have appeared minimal. State democrats pounced on that fact on Wednesday.
Policyholders are unsure of what happens next.
"People can’t afford to live here, if they’re even able to find property insurance the premiums are through the roof, 40, 50, 60 percent and that is unacceptable," said Nikki Fried, head of the Florida Democratic Party.
Politics aside David Murray, claim attorney, offered advice for what people should do if they are a Farmer’s customer.
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"If you’re a policyholder, you need to take action now. You can go find a new insurance company and your premium dollars that you paid to Farmers, they will be required to reimburse the unearned premium dollar." said Murray. "The reason people should start talking now about finding a new insurance company is because it is not as easy a process if your home needs a new roof or upgrades. Or, certain insurance companies don’t want to insure your home in the current state, then you’ll have time to make the improvements."
For some, those costs could be too much.
"We love it, makes us sad, but it’s getting to the point where we can’t afford it," said Schweitzer.