Posted on 03/22/2024 2:07:13 PM PDT by Morgana
California's largest insurance company will stop offering insurance to 72,000 homes across the state due to the increased risk of natural disasters and the effects of inflation.
Coverage for the 30,000 houses and 42,000 apartments impacted will cease this summer, the Bay Area News Group reported.
State Farm General cited soaring costs, the increasing risk of catastrophes like wildfires and outdated regulations as reasons it won´t renew the policies.
It comes just months after the insurance giant said it would also stop taking new applications for coverage from homeowners 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.
'State Farm General takes seriously our responsibility to maintain adequate claims-paying capacity for our customers and to comply with applicable financial solvency laws,' the statement read.
Adding: 'It is necessary to take these actions now.'
The company said the newly announced cancellations account for just over 2 percent of its California policies.
It is not yet clear where the effected homes are located in the state or what criteria was used to determine that they would not be renewed.
The California Department of Insurance said State Farm will be questioned by regulators over the decision.
'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.'
(Excerpt) Read more at dailymail.co.uk ...
Kemper pulled out of California too
I have friends and relatives there that need to talk to their state farm agent.
The weather has been perfect across the country. lol.
tough to do business in blue states.
Thank you Sierra Club for turning the forests into tinder boxes.
Just icing on the cake! No lake or river to fight the fires because Biden tore them out! Wells are poisoned, can’t live there anyway!
What the hell next!!!?
60 years with State farm....
California is not a serious state. We have arguably the worst forest management in the country (world?) and regularly suffer huge wildfires. Then the stupid bureaucrats and politicians blame insurance companies and the utilities as a CYA. Just ridiculous.
No insurance company would go into a place like Haiti or Venezuela. And the lawlessness in California is fast changing that once well-managed state into a third-world country.
Reap the whirlwind.
A lot of it has to do with the Insurance Commission controlling the rates.
Dear California: Welcome to Florida.
Considering the number of homeowners in wildfire zones who refused to mitigate the risk with defensible space and other smarter choices, I’m surprised they waited this long, too.
“I’m shocked they or any other insurance company did not do this sooner.”
They have. Four Kemper Corp. subsidiaries — Merastar Insurance, Unitrin Auto and Home Insurance, Unitrin Direct Property and Casualty, as well as Kemper Independence Insurance — will no longer renew preferred home and auto insurance policies in California, a state that has suffered a number of wildfires, floods and other extreme weather events in recent years.
Allstate announced in November 2022 that it would “pause new homeowners, condo and commercial insurance policies in California to protect current customers,” the Associated Press reported in June.Feb 5, 2024.
As of October 1st of this year, Liberty Mutual will no longer be offering business owners’ policies in California.Aug 1, 2023
Farmers subsidiary pulls out of California, becoming latest insurer to do so. Another California insurer will stop issuing coverage in the state in a move affecting approximately 58,000 auto policies.Nov 14, 2023
USAA, Travelers, Nationwide and Chubb are still active in California, they have just either limited or stopped writing new home insurance policies. Current home insurance policies with these providers are still being honored.
There are more.
wy69
Coming soon Federal Home Insurance?
63 years with us.
Can’t blame them. I’m in favor of pulling out of all Communist Countries.
They already cancelled a lot of policies the last two years.
Well, other than new york, this couldn’t have happened to a better state.
btt
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