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Farmers Insurance is leaving Florida in latest blow to homeowners
(www.tampabay.com)
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this post was submitted on 11 Jul 2023
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"Don't get to leave after taking policyholder money"
What do you think insurance is? You're not "purchasing" anything, you're buying an ability to recover losses. It's not like when I cancel my policy I get to walk away with a pile of boards from Home Depot on my insurance company's dime because I haven't had major damage to my house.
It's like if Netflix decided to cancel all subscribers in FL and the response was "I gave you all that money and I don't get to keep watching your movies forever???"
Typically when an insurer exits a state they either nonrenew the policies, meaning that you have coverage until the end of the policy period, or they stop writing new business but keep their renewals. Neither one of those constitutes taking the money and running. It's so weird that people would see it that way.
There are some states ( I don’t live in FL, but I doubt they offer this type of insurance) that offer Perpetual Insurance. Which is where you pay upfront for coverage, and when you no longer need coverage you’re money is returned.
It costs a lot upfront, but you save a lot in the long run. And any state that offers this type of insurance, I recommend anyone with the means to jump on it.
You’re not wrong, but there are other options.
That's fascinating and I have not heard of this type of system before. Presumably in a system like that, they would still be returning the person's money when they left, though...