Posted on 01/17/2025 1:26:19 PM PST by dennisw
State Farm will offer insurance renewals to Los Angeles residents it had planned to drop.
In a major U-turn, the company said it would renew policies in the badly-hit Pacific Palisades neighborhood, alongside thousands more in Los Angeles county.
However, the offer does not apply to policies that had already lapsed when the deadly fires started on January 7.
In fact, California insurance commissioner Ricardo Lara urged coverage providers last week to suspend pending non renewals in the Palisades and Eaton fire zones.
State Farm made the U-turn on Wednesday, a move first reported by The LA Times.
Lara's office said he was in talks with State Farm to get more details about what the change of policy means for residents.
'All eyes are on insurance companies right now, including mine,' Lara said in a statement Wednesday in response to State Farm's decision.
'We are going to keep working to make sure everyone's claims are paid fairly, quickly, and completely.'
A day later, State Farm spokesperson Bob Devereux said: 'This decision reflects our commitment to supporting our customers and goes beyond the department of insurance's request.'
Policyholders in the fire zones would get an offer for a one-year renewal, the company said.
Those with total losses, meanwhile, would get renewals for two years, as is required by law.
State Farm said in March that it would stop offering insurance to 72,000 homes across California, blaming the risk of natural disasters and the impact of inflation.
The Department of Insurance said that among the policies that the company had targeted for nonrenewal, more than 7,600 were in the Palisades fire zone.
State Farm - the leading home insurer in California - said around two-thirds of the policies it had planned to cancel were still active when the fires began.
(Excerpt) Read more at dailymail.co.uk ...
No problem…. The renewals are on the properties already burned down.
Most homeowners did not "let" their policies lapse. Most insurance companies stopped offering renewals, and no one was writing new ones. Most lapses were forced.
Insuring land cannot be too risky.
“Also they may show a slight $50,000 month increase in premiums but the good news is that they are insured.”
Only IF APPROVED by the Leftists that they buckled to.
Bottom Line: NEVER buckle to the Left - simply TELL THE TRUTH, which, in this case, was that California had stopped trying to prevent fires from spreading. Tell the world LOUD AND CLEAR that if homeowners want insurance, California’s government will have to provide it. That is the ONLY CHANCE to get any change.
State Farm will get new customers in the areas that were burned knowing full well they will have decades of no fires.
There is no law which compels an insurance company to do business in all of the states, let alone CA.
They have, unfortunately, made a business decision to suck up to the bureaucracy, which will make ratepayers nationwide pick up the risk in higher premiums.
I have absolutely nothing good to say about state farm, but they made the right decision to begin to non-renew policies.
This latest decision - an incredibly bad one - should give all state farm customers good reason to switch to another carrier.
It’s simple:
Ratepayers with the carrier share the burden.
In my experience, state farm customers are historically biased toward the company, ignoring blatant red flags present for decades that it was NOT a company to do business with.
Well, here’s yet another red flag.
Anyone remaining with the carrier is, well...not very smart.
But actually they are not even in the top 5.
Based on the most recent information available for 2025, the top 5 homeowner insurance companies in California are:
AI also says this...
Additionally, some major insurers like Allstate and State Farm, while highly rated, are currently not selling new home insurance policies in the state.
When I saw State Farm had made a major U turn, I immediately thought that Jake from State Farm had turned back to being a white guy.
The smart ones, but AI is obviously not up to date. /s
Leaky things are never covered, is my experience. Only abrupt events.
😎
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