Photo taken by: Joel Metzger
Sacramento, CA — California’s largest insurer, State Farm, already announced nine months ago that it will not issue new home insurance policies in California.
This week, the company also announced that it is declining to renew an additional 72,000 policies of existing customers (30,000 are homes and 42,000 are commercial apartment properties). It takes effect this summer. The company cites the rising risk of catastrophes like wildfires and having to work within California’s “decades-old insurance regulations.”
The company stated that it will work with Governor Gavin Newsom and Insurance Commissioner Ricardo Lara to help develop reforms that better align insurance rates with risk.
The new round of cancelations only accounts for 2% of State Farm’s California policies, and the company did not indicate which regions are hit hardest, or the criteria for selecting non-renewals.
Written by BJ Hansen.
Sign up for our Breaking News Alerts and the myMotherLode.com Daily Newsletters by clicking here. Report breaking news, traffic or weather to our News Hotline (209) 532-6397. Send Mother Lode News Story photos to news@clarkebroadcasting.com.
Contact Your Local Representatives; US Congressional Rep. 5th District Tom McClintock, US Senator Alex Padilla, 8th State Assembly District Jim Patterson or, in some parts of Calaveras, 9th State Assembly District Heath Flora and 4th District State Senator Marie Alvarado Gil in our Community Guide Government Section here. For the complete coverage of California State News on myMotherLode.com visit our State News Page here.