State Farm provides update on California
State Farm is providing an update on its activity in California.
The insurer is working to ensure its long-term sustainability in the state, which had led State Farm General to make some “difficult but necessary decisions” that will impact a portion of its California policyholders as follows:
- Non-renew approximately 30,000 homeowners, rental dwelling, and other property insurance policies (residential community association and business owners)
- Withdraw from offering commercial apartment policies with the non-renewal of all of those approximately 42,000 policies
These actions are California-specific and will occur on a rolling basis over the next year, beginning on July 3, 2024, for homeowners, rental dwelling, residential community association and business owners policies and on August 20, 2024, for commercial apartment policies. Combined, these policies represent just over 2% of State Farm General’s policy count in California.
The insurer said that this decision was reached 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.
