Trump Official Warns GOP Could Lose Florida as Farmers Insurance Leaves

A former Trump official is warning the Republican Party that Florida's insurance market could cost them the next election.

"I keep saying hurricane insurance costs are a vital issue in Florida - a truly fundamental kitchen table concern. It changes votes, for real," Michael Caputo, who served as the assistant secretary of public affairs under former President Donald Trump's Department of Health and Human Services, tweeted on Tuesday. "Florida is a must-win battleground for the GOP nomination - will hurricane insurance decide it?"

Caputo's remarks come as Farmers Insurance announced on Tuesday that it was officially leaving Florida, dropping all home, auto and umbrella policies across the state in a move that is expected to affect some 100,000 homeowners.

Farmers is the fourth insurance company to leave the Florida market in the last year and the withdrawal comes amid a tumultuous time for the state's insurance market. Hurricane rebuilding and recovery costs have driven up Florida's insurance costs in recent years, forcing residents to pay the highest premiums in the country.

"This business decision was necessary to effectively manage risk exposure," Farmers told Newsweek in a statement. The company said the decision will affect about 30 percent of its overall policies in Florida, but not ones issued through subsidiaries. Affected customers should receive notifications about when their coverage will end and alternative options for replacement coverage.

On Tuesday, Caputo warned that homeowners insurance is enough of a "wedge issue" to make or break a political campaign. Political consultant Jay Townsend agreed.

"As insurance costs rise, and strain the household budgets of working-class people, they soon start looking for the culprit," Townsend told Newsweek. "Inevitably, they will identify the Governor as one of them. And even if he did nothing wrong, they'll ask why he didn't do something to stop it."

The announcement also comes in the midst of Florida's increasingly severe hurricane season, which typically runs from June to November and peaks from August through October.

Florida Minority Leader Lauren Book criticized the move over Twitter on Tuesday, calling it an "irresponsible & dangerous" decision given the timing of the decision.

"For @WeAreFarmers to exit FL in the middle of hurricane season — leaving policy holders high & dry, searching for replacement coverage that is both unaffordable & hard to come by — is irresponsible & dangerous," Book wrote. "The state must do more to solve this quality of life issue for Floridians. Costs keep rising & insurers keep fleeing, but there's no relief in sight."

The exit is the latest decision from Farmers, which has a national presence, to shrink its policies in response to extreme weather. On Monday, the company announced that it had begun limiting new homeowners insurance policies in California, citing high costs and wildfire risks. State Farm and Allstate also announced in May that they would no longer write homeowner's policies in California.

The string of decisions exemplifies how difficult it's become for homeowners to find insurance in states where climate change has hit the hardest.

A day before Farmers' decision to pull out of Florida was made public, Florida Chief Financial Officer Jimmy Patronis, a Republican, threatened to hold the company accountable should it do so.

"Hearing rumors @WeAreFarmers might pull out of Florida," Patronis tweeted Monday. "If that's true my office is going to explore every avenue possible for holding them accountable. Don't get to leave after taking policyholder money."

Far-right activist Laura Loomer called out Patronis on Tuesday for not doing more to have prevented Farmers from pulling out.

"Everyone who has Citizens Insurance is at risk of losing everything this Hurricane season. What are you and your boss [Florida Governor] Ron DeSantis doing about it since he's never here anymore and he's running for President?" Loomer tweeted at the state official. "You have helped create a crisis that is going to make the housing market in Florida CRASH!"

Florida lawmakers have sought to convince more insurance companies to stay by making it harder for policy owners to sue insurance companies and by offering $3 billion to help them with storm seasons. But the legislation has been unable to lower premiums, according to a report from the Florida Office of Insurance Regulation that shows rates continuing to increase.