Property insurance going up or away for many in brewing crisis
Florida CFO Jimmy Patronis says communication and negotiations have been met with atrocious effort from Farmers Insurance, which halted policies in the high-risk hurricane state this week.
There's a storm brewing in the property insurance market, and companies and consumers alike are starting to feel it.
BlackRock CEO Larry Fink told FOX Business last month that not enough attention is being paid to the fact that major insurance companies are fleeing California and Florida because they cannot raise rates high enough to meet returns. Fink warned, «We're displacing a really large segment of America today that are not going to be able to afford homeowners insurance if they are in an area of risk.»
Big names including State Farm, Allstate and Farmers Insurance have announced they are not writing new business in California, and seven insurers have been declared insolvent in Florida since early 2022.
Donna LaMountain, 51, surveys damage on Pine Island Road in Matlacha, Florida, on Sept. 29, 2022, after Hurricane Ian made landfall. (Matias J. Ocner/Miami Herald/Tribune News Service via Getty Images / Getty Images)
The Wall Street Journal recently reported that insurers are looking to raise premiums on auto and homeowners insurance after suffering significant losses due to catastrophe costs, pointing out that several states suffered more than a billion dollars in damages from severe weather so far this year, including Texas, Illinois, Kentucky, Colorado, Tennessee, Arkansas and Missouri.
WITH HURRICANE SEASON ON THE HORIZON FOR HAWAII, MANY HOMES IN THE STATE MAY NOT BE PREPARED
So what is going on that is causing insurers to reduce coverage and even leave some states altogether? According to David Sampson, president and CEO
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