State Farm discontinuing 72,000 home policies in California in latest blow to state insurance market

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Insurance giant State Farm says it will discontinue coverage for 72,000 houses and apartments in California starting this summer.

FILE - Homes leveled by the Camp Fire line a development on Edgewood Lane in Paradise, Calif., on Nov. 12, 2018. State Farm will discontinue coverage for 72,000 houses and apartments in California starting summer 2024, the insurance giant said.

The move comes as California's elected insurance commissioner undertakes a yearlong overhaul of home insurance regulations aimed at calming the state's imploding market by giving insurers more latitude to raise premiums while extracting commitments from them to extend coverage in fire-risk areas, the news group said.

“One of our roles as the insurance regulator is to hold insurance companies accountable for their words and deeds,” Deputy Insurance Commissioner Michael Soller said. “We need to be confident in State Farm’s strategy moving forward to live up to its obligations to its California customers.”Last June, State Farm said it wouldfor all business and personal lines of property and casualty insurance, citing inflation, a challenging reinsurance market and “rapidly growing catastrophe exposure.

 

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State Farm discontinuing 72,000 home policies in California in latest blow to state insurance marketInsurance giant State Farm says it will discontinue coverage for 72,000 houses and apartments in California starting this summer. The announcement this week comes nine months after the Illinois-based company said it would not issue new home policies in the state.
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