by Sundance at theconservativetreehouse.com
The insurance crisis in Florida is hitting the middle-class family, working community and retirees on a fixed income directly. Hundreds of thosands of residents have lost insurance coverage, and even more have seen policy premiums double. It is not uncommon to find homeowners who are paying more for insurance than their actual mortgage payment. Unfortunately, the situation is getting worse.
Farmers Insurance has notified the state they are pulling out of Florida, will not be writing any additional policies in the Sunshine state and when existing policies expire, they will not be renewed. Home and auto policy rates have already doubled in many areas for many people.
The insurance situation is becoming more unstable by the day, and the future outlook seems even worse amid reports that even more companies are planning to exit.
FLORIDA – Another property insurer is dropping coverage in Florida.
Farmers Insurance will stop writing new business and not renew its existing “Farmers-branded” automobile, home and umbrella policies in the Sunshine State, the company said Tuesday.
Last month, Farmers said it was only pausing new business in Florida. The company is also limiting new home policies in California, where it is based, according to news reports.
“This business decision was necessary to effectively manage risk exposure,” the company said in a statement.
The move will impact 30% of the company’s business in Florida, or roughly 100,000 policies. Policyholders affected by the decision are required to be given 120 days’ notice that their coverage will not be renewed.
Farmers on Monday sent notice of its plans to the Florida Office of Insurance Regulation, which is reviewing it. Insurers must give the office 90 days’ notice if they want to discontinue writing business in Florida. (read more)
The insurance company withdrawals works in concert with investment groups who prey on the outcome. Single family homes and even large condo developments are squeezed into a situation where housing is no longer affordable. The investment vultures then swoop in and end up controlling the properties.
Florida’s working and middle-class is being destroyed and a divide between the haves and have-nots is being created. The wealth gap is expanding as families are forced to leave the state and a larger percentage of self-insured rich people move in.
Long before Ron DeSantis became a potential presidential candidate, and long before Hurricane Ian devastated southwest Florida in 2022, I was highly critical of state policies that were not constructed around the backbone of the economy, the working class. Temporary H1B Visa workers replacing permanent residents as a workforce to fill the gap is not a long-term solution.
When you stop paying attention to the economic systems that support a sustainable service and production workforce in Florida, this snowballing outcome is predictable. None of it is good. Unfortunately, as I forewarned prior to the COVID era, Governor Ron DeSantis is creating a class-war tinderbox. The sentiment on the ground is increasingly growing angry. His absence is only making it worse.