State Farm Won’t Renew 72,000 Insurance Policies in California, Worsening the State’s Insurance Crisis
24th March 2024
The insurance giant announced Wednesday that it would not renew homeowner insurance policies for 30,000 customers, including owners of condominiums. It also plans not to offer commercial apartment policies and won’t renew the 42,000 now in place.
Although the number of people affected is large, the company said the cuts represent less than 3% of its policies in the state.
“This decision was not made lightly,” State Farm wrote in a statement. The company “takes seriously our responsibility to maintain adequate claims-paying capacity for our customers and to comply with applicable financial solvency laws. It is necessary to take these actions now.”
When the government will not act to protect property, then property insurance is a losing business. These companies aren’t charities, however much the state government is attempting to force them to act like it.