Editorial: Bad insurance news just keeps coming for Floridians
Florida's insurance storm is not subsiding.
And, everything right now seems to work against everyday Floridians when it comes to homeowners' insurance.
We have to ask if anyone in charge in Tallahassee or on the campaign trail cares enough to make the issue a priority?
Farmers Insurance notified state regulators it will end writing residential and auto policies in Florida, impacting an estimated 100,000 policyholders. Some subsidiaries of Farmers will continue to offer coverage.
Farmers is the latest insurance exit from a Florida marketplace where policyholders continue to get hit by high premiums, frustrating fights with insurance companies over storm damage and other claims and carriers exiting the state after big storms.
"We have advised the Florida Office of Insurance Regulation (OIR) of our decision to discontinue offering Farmers-branded auto, home, and umbrella policies in the state. This business decision was necessary to effectively manage risk exposure," said Farmers spokesman Trevor Chapman. "Farmers offers insurance through several different brands, and this decision applies only to policies issued through our exclusive agency distribution channel."
Other major national carriers — including State Farm and Allstate — have either completely pulled out of Florida homeowners' and property insurance marketplace or are curtailing new policies.
Insurance companies run scores of commercials telling consumers and small business owners to trust them with their needs.
Those TV and online ads ring hollow when hearing the stories of homeowners, small businesses and nonprofits who feel they have been left high and dry by their insurance companies after all the rain, wind and storm surge damage of Hurricane Ian.
Our politicians and regulators don't seem to be doing much better.
Efforts to address the insurance debacle by Gov. Ron DeSantis and majority Republicans have centered on insurance-industry backed efforts to rein in lawsuits. Florida accounts for high volumes of insurance related lawsuits nationally.
That makes it harder for existing carriers to operate here and discourages new insurers from entering the Florida market, according to the insurance industry and their political acolytes.
But the rub with that argument is that too many homeowners and local businesses feel their only recourse after a hurricane or tropical storm is to contact an attorney because their insurance agent is ignoring them or their claims are being delayed, low-balled or denied.
GOP lawmakers and state regulators also continue to worry about the state-backed Citizens Property Insurance Corp. and its growth. Citizens has gone from a public insurer or last resort to many homeowners' only resort.
Citizens wants its state overseers to raise its property insurance rates 13.1% with some increases in coastal areas even higher.
Citizens CEO Tim Cerio told state regulators last month "being able to charge actuarially sound rates is critical to market recovery and promoting depopulation."
"Citizens' rates are artificially low, which throws off the private market and distorts competition," Cerio said, adding that Citizens' lower rates are not fair to private insurance policyholders.
Good luck in convincing everyday Floridians that significantly higher premiums that benefit the $1.4 trillion insurance industry are good for them.
Our unsettling insurance trends are also being exported to other states such as California where carriers including Farmers and State Farm are also pulling back or completely pulling out after extreme weather events.
The trend could continue with extreme weather and bigger storms on the rise.
Not exactly, the 'good neighbors' touted in all those cheeky insurance ads.


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