Farmers to Stop Selling Home Policies in Texas

Farmers Insurance Group of Cos. said it is getting out of Texas.

The insurer said it will not sell or renew homeowners policies in the Lone Star state because regulators there won’t let it raise premiums to offset the $1.3 billion in claims paid over the last 18 months.

The Los Angeles-based insurer will stop renewing home policies as of Nov. 1, affecting about 700,000 policyholders. Farmers said it will continue selling auto, flood, commercial and life policies in Texas.

The company said the Texas Department of Insurance has made “unreasonable demands” and has refused to accept actuarial evidence justifying rate increases and policy term changes.

Farmers, which lost a $30-million Texas court case over water and mold damage claims in August 2001, sought to exclude such claims from future coverage.