A number of providers are now telling homeowners they live in high-risk areas that are too fire prone or “too densely populated.”
State Farm issued a written statement to NBC Bay Area earlier this week, explaining its decision to no longer write new policies for new California homes and to end coverage for about 50,000 existing California customers. The group said that insurers have been losing money due to California premium limits and that for every dollar insurance companies receive in premiums, a $1.08 is spent on paying out claims.
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