State Farm Drops Coverage for 72,000 Homes in California Amid Rising Costs and Wildfire Risk from non existent 1884057796 Watch Video

⏲ Duration: 0:43
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✓ Published: 23-Mar-2024

Description:
State Farm, California's largest home insurer, announced it will not renew policies for 72,000 homes and apartments starting this summer due to rising costs and wildfire risk. This comes after State Farm stopped offering new policies in California last year and accounts for over 2% of its policies in the state. Homeowners who lose coverage may have to turn to the California FAIR Plan, the state's insurer of last resort, which offers basic coverage at higher rates. Reliance on the FAIR Plan has doubled in 5 years as insurers exit fire-prone areas, with over $311 billion in liability exposure now vs $112 billion in 2019.