Insurance Companies Abandon Florida And California
Residential insurance companies are abandoning states with dangerous weather. High on the list are hurricane-prone Flrorida and wildfire-plagued California.
State Farm, Allstate, Farmers, and American National cut back and suspended new homeowners insurance. The reason is almost exclusively wildfires. Notable is the damage from the wildfires near LA in January. The Gifford Fire which is burning now is the largest so far this year. Those insurers which still do business are raising rates quickly.
State Government Takes Over
The California Department of Insurance has posted large gains in FAIR Plan policies (the state’s insurer of last resort). These figures are likely to rise as private insurers depart the state.
Major insurers like Farmers, AAA, and Progressive have cut back policies, or left the state completely, in Florida. Florida’s Citizens Property Insurance, the state’s insurer of last resort, may have become the largest insurer as private companies abandon the state.
The point will come, and may come soon, when the burden or home insurance in Florida and California cannot be carried completely by the state government. The means some homeowners won’t have insurance at all.
