Farmers Refuses Coverage For Houses With Past Water Claims

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Farmers Refuses Coverage For Houses With Past Water Claims

Thu Jul 18,11:59 PM ET

Texas' second-largest homeowners' insurer no longer writes new policies for

homes that have had a water-damage claim in the past three years. Farmers

Insurance also no longer insures houses older than 30 years unless they've

had their plumbing systems renovated in the previous ten years. The moves

took effect Monday and follow similar but less restrictive decisions last

month by Allstate Insurance. Allstate no longer issues new policies for

houses or individuals with water claims in the past three years. Some

Farmers agents say the company wants to pare back its business in Texas

after suffering mounting financial losses from water and mold claims. State

lawmakers have been told homeowners are being locked into their current

homes because prospective buyers can't find coverage. Farmers insures

750,000 Texas homeowners. Allstate insures 600,000 homeowners here.