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State Farm General cited soaring costs, the increasing risk of catastrophes like wildfires and outdated regulations as reasons it won´t renew the policies.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 ...
Could be that State Farm is listening to their customers in all the other states gritching about the huge rate increases. My home insurance has gone up nearly a grand each of the last two years.
Twenty five years ago I was working in park maintenance in Colorado and the sierra club tried to stop us from cutting and pulling out dead trees as they “ help the ecosystem. My boss said they added to the fire load of the local forest annd threatened the local housing and escape routes. We ignored them and pulled out a heck of a lot of trees.
I would stop coverage on every property in California.
WAit until you see what your rates are beginning this August....
Where’s the “Well….bye!” Meme when you need it?
Yes, this, one highly suspects.
If you don’t let sane people clear out the underbrush you’re going to have big fires.
This is nutty greenies saving ‘motha earf’ by having huge forest fires. These people are nuts.
Does this mean that California is about to break off and sink in the Pacific? We were warned of this 60 years ago!
Like a bad neighbor............
Re the non insurance issue and data:
Can anyone provide me with the list of California areas by zip code showing the number of homes, number of probable fire hazards and number of homes that will not be insured.
I had this data/link, and now I can’t find it.
Thanks
Dave
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