Farmers Insurance Exits Florida, Leaving Thousands Without Coverage

Farmers Insurance has become the latest property insurer to withdraw from Florida, citing risk exposure in the hurricane-prone state. Despite efforts by the state's legislature and Governor Ron DeSantis to stabilize the market, rising premiums have made home ownership less affordable. The decision by Farmers will impact new coverage of auto, home, and umbrella policies issued through its exclusive agency distribution channel. While 70% of current policies will not be affected, critics argue that DeSantis should focus more on addressing the affordability of housing and insurance rather than divisive cultural issues. The state's insurance regulation office expressed disappointment with the decision, highlighting potential cascading impacts on policyholders. Florida has struggled to maintain a healthy insurance market since Hurricane Andrew in 1992, and the climate crisis has further increased risks for carriers.