Farmers member company Foremost said property nonrenewals are part of targeted underwriting actions that began late last year in Texas to mitigate risk exposure, according to a spokesperson.
The action impacts some homeowners, condo, dwelling fire and manufactured home policies, Luis Sahagun said.
“More than 90% of our existing customers in Texas with Foremost property insurance policies are not affected by this action. Also, Foremost Insurance does continue to offer new property insurance policies in the state, provided applicable underwriting eligibility guidelines are met,” he said.
The nonrenewals target coastal policies lacking a wind exclusion. They started in January and are ongoing.
A derecho system that charged across Gulf States from Texas to Florida in mid-May was particularly destructive in the Houston area. Wind speeds of 100 mph and hail extensively damaged residential and commercial property. The derecho blew out about 2,500 windows in skyscrapers, tore roofs from homes and caused major power outages, Aon said earlier.
Underwriting entities of Farmers Direct ultimate parent Zurich Insurance Group Inc. currently have Best’s Financial Strength Ratings of A (Excellent) and A+ (Superior).
The five largest writers of homeowners multiperil coverage in Texas in 2023, based on direct premiums written, were: State Farm Group, with an 18.88% market share; Allstate Insurance Group, 14.87%; USAA Group, 10.23%; Liberty Mutual Insurance Cos., 8.43%; and Farmers Insurance Group, 7.33%, according to BestLink.
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