State Farm Declines To Renew 72,000 California Policies
Sacramento, CA — California’s largest insurer, State Farm, already announced nine months ago that it will not issue new home insurance policies in California.
This week, the company also announced that it is declining to renew an additional 72,000 policies of existing customers (30,000 are homes and 42,000 are commercial apartment properties). It takes effect this summer. The company cites the rising risk of catastrophes like wildfires and having to work within California’s “decades-old insurance regulations.”
The company stated that it will work with Governor Gavin Newsom and Insurance Commissioner Ricardo Lara to help develop reforms that better align insurance rates with risk.
The new round of cancelations only accounts for 2% of State Farm’s California policies, and the company did not indicate which regions are hit hardest, or the criteria for selecting non-renewals.
