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Slide Insurance, a 2-year-old insurtech startup based in Tampa, announced it has acquired renewal rights for 86,000 Florida homeowners and condo owners policies from Farmers.
Farmers customers whose home insurance policies are set to renew in February 2024 will receive a non-renewal notice from Farmers 120 days before their coverage ends. Slide will follow up with a renewal offer from Slide 45 days or more before their policy renewal date.
The company will also offer appointments to Farmers agents in Florida but will not assume any Farmers auto, renters, or umbrella policies.
Farmers exit from the Florida home insurance market
In July, Farmers said it would discontinue its home insurance business in Florida, although its subsidiaries would continue to sell new and renewal policies in the state. Farmers, the fifth-largest home insurance company in the U.S. by market share, cited Florida’s level of insurance risk in its decision to exit the state.
Severe weather, high property values, rising material and labor costs, and a high number of lawsuits have made Florida’s insurance market a difficult place to do business. Multiple insurers have either filed for bankruptcy in Florida, cut back on their business, or left the state entirely since January 2023.
All these factors have also affected homeowners’ wallets. Florida has the highest home insurance prices in the nation, with an annual average approaching $8,000, according to Insurify data.
Slide Insurance’s history in Florida
Launched in 2021 by Bruce Lucas, founder and former CEO of the super-regional homeowners carrier Heritage Insurance, Slide currently underwrites more than 170,000 home insurance policies in Florida.
Industry ratings organization AM Best has yet to rate Slide. But financial analysis firm Demotech Inc. has given the company an A (Exceptional) rating for financial stability, Slide said in a message to Farmers policyholders posted on the company’s website.
What’s next?
Farmers customers with HO-3 (home) and HO-6 (condo) policies should watch their mail for a renewal offer from Slide. The insurtech company will send renewal offers at least 45 days before the expiration date of their Farmers policies, Slide said.
Policies will automatically renew based on the renewal offer, but homeowners can make policy changes by contacting their insurance agents, according to Slide. For those who accept Slide’s renewal offer, the company will reach out to policyholders’ mortgage lenders to provide updated information and invoices.
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