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#35637 - 10/03/02 03:53 PM Farmers Ins.
Andy_Z Offline
10K Club
Andy_Z
Joined: Oct 2000
Posts: 27,590
On the Net
IBAT sent a nice reminder you may want to think about. If Farmers is pulling out of TX as of 11-02, you might want to review your RE loans and see what customers you'll have at risk and when. Farmers has a 20% market here so you may well have some loans requiring attention. Coordinate with the customer on who the new carrier will be.
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#35638 - 10/04/02 09:23 PM Re: Farmers Ins.
Lestie G Offline

Power Poster
Joined: May 2002
Posts: 3,607
Near the Land of Enchantment
There was a full page ad from Farmer's in our paper today, apologizing for the pull-out, and making sure everyone knew it was because they couldn't work things out with the Texas Department of Insurance. They stated, "We simply cannot allow the state to force our customers to accept the financial instability that would come from conducting homeowners business in an unsound manner."

They also say, "Most companies have simply withdrawn from or severly restricted their homeowners business in Texas." I'll admit I'm not keeping up with this to a great degree, but I haven't noticed anything like that, have any of you? My company certainly hasn't said anything like that to me.
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#35639 - 10/12/02 06:18 PM Re: Farmers Ins.
Bob McComas Offline
Platinum Poster
Bob McComas
Joined: Sep 2002
Posts: 570
Dallas, Texas
I believe State Farm was making some noise about it several years ago, but quietly decided it would not be in their best interest.

I have not heard of any other insurance companies pulling out of this market.

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#35640 - 10/15/02 09:33 PM Re: Farmers Ins.
Anonymous
Unregistered

I can tell you from personal experience that Farmers Insurance is not writing homeowners or renters insurance. I recently moved from Oklahoma to Texas and was fortunate that Farmers renewed my policy, however as soon as it was renewed I got a notice that it won't be renewed in 2003. I have checked with State Farm they aren't writing any homeowners or renter either. I'm sure there are a few companies that will write it for a price that none of want to pay, but won't have much choice. Right now I'm happy to be an opertions person and not in the mortgage area. All we can hope for, I think, is that after the election some one will move on this issue and get it resolved, or at least I can hope that happens.

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#35641 - 10/15/02 09:39 PM Re: Farmers Ins.
Lestie G Offline

Power Poster
Joined: May 2002
Posts: 3,607
Near the Land of Enchantment
I think I was just naive, and being allowed to live in a bubble! I got a call from my insurance agent (State Farm) last week explaining the limitations of my new homeowners policy. The policy premium nearly doubled from 2001-02 to 2002-03, the deductibles went up, and the coverage was decreased. Yikes!

I asked about the differences and the problems. I was told that State Farm was not writing policies for new customers in Texas - if an existing customer bought a new house, they'd cover it though. They said the reason why was that State Farm was paying out $2 for every $1 it collected in Texas premiums right now - due to black mold claims. They didn't seem to want to blame anything but that.
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#35642 - 10/16/02 12:58 AM Re: Farmers Ins.
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 80,325
Galveston, TX
They fail to mention that they have lost their butts in the stock market over the last three years. Mold indeed.
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