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.

SACRAMENTO, Calif. — State Farm will discontinue coverage for 72,000 houses and apartments in California starting this summer, the insurance giant said this week, nine months after announcing it would not issue new home policies in the state

“This decision was not made lightly and only after careful analysis of State Farm General’s financial health, which continues to be impacted by inflation, catastrophe exposure, reinsurance costs, and the limitations of working within decades-old insurance regulations,” the company said in a statement Wednesday.

The California Department of Insurance said State Farm will have to answer question from regulators about its decision to discontinue coverage.

 

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