State Farm to Discontinue Coverage for 72,000 California Home Insurance Policies

📆 3/24/2024 6:54 PM
📰 FoxBusiness

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Insurance News

California,Insurance,State Farm

California's insurance commissioner Ricardo Lara spoke out after the state's largest home insurance provider announced that it would discontinue coverage for tens of thousands of policies this summer. State Farm announced on March 20 that it would cut 72,000 home and apartment policies in California because of inflation, regulatory costs and increasing risks from catastrophes. The decision is a blow to California property owners, who already suffer under high insurance rates or scarce policy coverage. Commissioner Lara expressed concern and plans to investigate State Farm's finances, while also warning against excessive regulation that could drive companies out of California.

California's insurance commissioner Ricardo Lara expressed concern after State Farm, the state's largest home insurance provider, announced that it would cancel coverage for 72,000 policies. The decision was attributed to inflation, regulatory costs, and increasing risks from catastrophes. Commissioner Lara acknowledged the crisis and expressed his intention to investigate State Farm's finances.

However, he also cautioned against excessive regulation that could drive companies out of California

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