Farmers Insurance Cuts Coverage in Florida and California Amid Rising Natural Disaster Costs

Farmers Insurance plans to reduce its coverage in Florida, leading to some Floridians needing new auto, home, or umbrella insurance policies. The decision only applies to policies issued through the exclusive agency distribution channel, and 70% of current policies will not be affected. Farmers Insurance will inform impacted policyholders of the timeline for losing coverage and provide options for replacement. The move comes as the Florida insurance market faces difficulties, with some insurers becoming insolvent and others halting coverage. The Florida Office of Insurance Regulation is reviewing the notification, and Farmers Insurance has committed to facilitating a smooth transition for affected policyholders.