Farmers Insurance Company has directed its agents to discontinue selling new homeowners policies in Texas beginning Oct. 31. The company will also stop offering replacement policies, existing policies that are not renewed during the renewal period.
The company took the action after the Texas Department of Insurance issued a cease and desist order against Farmers that effectively freezes the carrier’s homeowners insurance rates. It prevents Farmers from initiating any additional rate increases and gives the company 90 days to develop and implement a new corrective plan to remedy what TDI believes to be its unfair pricing practices. TDI plans to seek restitution for Farmers customers who are found to have been overcharged.
A Farmers spokesperson said the company wants to continue to do homeowners business in Texas and is working with TDI to resolve the outstanding issues.
Farmers stopped offering new comprehensive HO-B policies in the state last August but has since been selling HO-A and HO-A plus policies to new and existing customers.
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