Farmers Insurance to pull out of Florida, cut back in California

Farmers Insurance will no longer offer home and auto coverage in Florida, forcing thousands to find new providers.

According to the company’s announcement Tuesday, the decision will leave around 30% of Floridians without coverage, affecting around 100,000 people. Only company-branded plans will stop in the storm-hit Sunshine State, meaning policies sold by subsidiary insurance companies will still be valid after Farmers pulls out.

Farmers, the country's fifth-largest home insurance firm, also said it will cut back on coverage offerings in California amid wildfire threats.

Under Florida law, insurance companies must give three months' notice to the Office of Insurance Regulation before informing customers that their plans are canceled. The office apparently received word Monday about the company pulling out.

“We have advised the Florida Office of Insurance Regulation 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,” Farmers spokesman Trevor Chapman said.

Especially after Hurricane Ian-battered Florida homes and businesses last year, insurance providers are pulling up stakes. Farmers is the fourth major provider to leave the state in the past year.

Some smaller insurance providers have gone out of business after giving massive payouts after storms.

Homeowners in Florida already pay three times as much as the average U.S. homeowner. With Farmers moving out, rates are expected to jump even higher this year.