Earlier this week, Farmers Insurance announced it would discontinue various home, auto, and umbrella policies in the state, citing a need to"effectively manage risk exposure." The move is likely to complicate the Florida homeowners insurance market, which is already in turmoil, even as lawmakers pursue aggressive action to stabilize the market.
Mark Friedlander, the director of corporate communications for the Insurance Information Institute, said the dramatic rising costs of premiums for homeowners insurance is unique to the Sunshine State but not due to the threat of hurricanes. "The property insurance market has been extremely unstable, even today, we have 18 Florida residential insurers — smaller companies — that are on a watchlist of the Florida insurance regulator because of concerns over their financial health," Friedlander said.
Friedlander did applaud action by elected officials in Florida for taking action against two of the drivers of the crisis, but he said the crisis will not be over in short order because of how long the market has been in turmoil. Jeremy Redfern, the governor's press secretary, pointed to the action by DeSantis and the Florida legislature in the past three years to curb the excessive litigation that has plagued the insurance marketplace in the state.
He also pointed to legislation from a special session in December 2022, SB 2-A, which eliminated one-way attorney fees for property insurance claims, among other reforms to help stabilize the Florida insurance market.