Farmers Insurance refuses to renew over 1,000 home insurance policies, officials say

OKLAHOMA CITY, Okla. (KOKH) — According to the Oklahoma Insurance Department, about 1,300 policyholders in the eastern half of the Sooner State will have to find a new insurance company to insure their homes.

On Monday, officials told FOX 25 that Farmers Insurance would not renew property insurance due to the wildfire risk.

Glen Mulready, Oklahoma’s insurance commissioner, said he had never seen an insurance company take such action in his five and a half years in office.

“We don’t see that with other companies. I mean, everyone is adjusting to the losses and the weather that we have. And that’s not just true in Oklahoma, it’s true across the country. You know, there are real problems with property insurance and especially homeowners insurance,” Mulready noted.

According to Mulready, Farmers is Oklahoma’s second-largest provider of homeowners insurance.

He said the decision will affect less than two percent of the company’s home insurance business in the state.

The official said the move shows the company is interested in minimizing its vulnerability to wildfires, not actually increasing that risk.

Andy James, fire chief for the Oklahoma Forestry Service, told FOX 25 that there has not been a significant increase in wildfire danger in the eastern half of the state over the past year.

“Nothing that would blow us away. But the good thing about eastern Oklahoma is that that’s where we as an agency have most of our resources,” he explained.

According to Mulready, 113 companies offer homeowners insurance in Oklahoma.

“We don’t have an availability problem. While you could argue that we have an affordability problem as the cost of replacing a home and the cost of insurance continues to rise, we don’t have an availability problem. We have a lot of competition out there,” the commissioner added.

Mulready strongly advises those affected to take out new insurance.

Starting November 1, Farmers Insurance will begin declining to renew policies for those who have been notified of the change.

The current guidelines remain valid until they are due for renewal.

Farmers Insurance did not immediately respond to FOX 25’s request for comment.