--- title: State Farm Discontinuing 72,000 Home Policies In California In Latest Blow To State Insurance Market | WeatherBug | WeatherBug description: State Farm is discontinuing 72,000 home policies in California starting this summer. canonical: https://www.weatherbug.com/news/State-Farm-Discontinuing-72,000-Home-Policies-In-C og:title: State Farm Discontinuing 72,000 Home Policies In California In Latest Blow To State Insurance Market | WeatherBug | WeatherBug og:description: State Farm is discontinuing 72,000 home policies in California starting this summer. og:url: https://www.weatherbug.com/news/State-Farm-Discontinuing-72,000-Home-Policies-In-C og:site_name: WeatherBug og:locale: en_US og:image: https://cms-assets-con.cdn.weatherbug.net/assets/contentitems/ed/ed7ee228-3d2b-4208-8ed3-32e0e46c8225/52e0ce98-d40a-4283-82d1-d0fe816ebf4b/f7bcbed4-2b9c-4c49-85a4-eb8499a6da3b.jpg og:image:width: 800 og:image:height: 600 og:image:alt: Homes leveled by the Camp Fire line a development on Edgewood Lane in Paradise, Calif., on Nov. 12, 2018. State Farm will discontinue coverage for 72,000 houses and apartments in California starting summer 2024, the insurance giant said. The Illinois-based company, California's largest insurer, cited soaring costs, the increasing risk of catastrophes like wildfires and outdated regulations as reasons it wont renew the policies on 30,000 houses and 42,000 apartments, the Bay Area News Group reported Thursday, March 21, 2024. (AP Photo/Noah Berger, File) og:type: article article:published_time: 2024-03-22T03:42:34Z article:modified_time: 2024-03-22T03:42:34Z article:author: By The Associated Press article:tag: California article:tag: climate article:tag: insurance article:tag: map article:tag: maps article:tag: weather article:tag: wildfire twitter:card: summary_large_image twitter:title: State Farm Discontinuing 72,000 Home Policies In California In Latest Blow To State Insurance Market | WeatherBug twitter:description: State Farm is discontinuing 72,000 home policies in California starting this summer. twitter:image: https://cms-assets-con.cdn.weatherbug.net/assets/contentitems/ed/ed7ee228-3d2b-4208-8ed3-32e0e46c8225/52e0ce98-d40a-4283-82d1-d0fe816ebf4b/f7bcbed4-2b9c-4c49-85a4-eb8499a6da3b.jpg --- [](/weather-forecast/now) [Back to forecast](/weather-forecast/now) # State Farm Discontinuing 72,000 Home Policies In California In Latest Blow To State Insurance Market March 21, 2024 at 11:42 PM EDT By The Associated Press  SACRAMENTO, Calif. (AP) — State Farm will discontinue coverage for 72,000 houses and apartments in California starting this summer, the insurance giant said this week, nine months after announcing it would not issue new home policies in the state The Illinois-based company, California's largest insurer, cited soaring costs, the increasing risk of catastrophes like wildfires and outdated regulations as reasons it won’t renew the policies on 30,000 houses and 42,000 apartments, the Bay Area News Group reported Thursday. “This decision was not made lightly and only 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,” the company said in a statement Wednesday. “State Farm General takes seriously our responsibility to maintain adequate claims-paying capacity for our customers and to comply with applicable financial solvency laws,” it continued. “It is necessary to take these actions now.” The move comes as California's elected insurance commissioner undertakes a yearlong overhaul of home insurance regulations aimed at calming the state's imploding market by giving insurers more latitude to raise premiums while extracting commitments from them to extend coverage in fire-risk areas, the news group said. The California Department of Insurance said State Farm will have to answer question from regulators about its decision to discontinue coverage. “One of our roles as the insurance regulator is to hold insurance companies accountable for their words and deeds,” Deputy Insurance Commissioner Michael Soller said. “We need to be confident in State Farm’s strategy moving forward to live up to its obligations to its California customers.” It was unclear whether the department would launch an investigation. Last June, State Farm said it would stop accepting applications for all business and personal lines of property and casualty insurance, citing inflation, a challenging reinsurance market and “rapidly growing catastrophe exposure.” The company said the newly announced cancellations account for just over 2% of its California policies. It did not say where they are located or what criteria it used to determine that they would not be renewed. Copyright 2024 The Associated Press. All rights reserved. \_\_\_ _Image: Homes leveled by the Camp Fire line a development on Edgewood Lane in Paradise, Calif., on Nov. 12, 2018\. State Farm will discontinue coverage for 72,000 houses and apartments in California starting summer 2024, the insurance giant said. The Illinois-based company, California's largest insurer, cited soaring costs, the increasing risk of catastrophes like wildfires and outdated regulations as reasons it wont renew the policies on 30,000 houses and 42,000 apartments, the Bay Area News Group reported Thursday, March 21, 2024\. (AP Photo/Noah Berger, File)_ We use technologies, such as cookies, to analyze your use (i.e., pages visited), to customize content, for our internal analytics purposes and for security and other purposes. By continuing to use this website, you agree to this usage. Please review our [privacy policy](/legal/privacy) for more details as well as for information on how to contact us to object to these activities. [Ad Choices](/legal/privacy#digitaladvertisingandyourchoices) ```json {"@context":"https://schema.org","@type":"NewsArticle","mainEntityOfPage":{"@type":"WebPage","@id":"https://www.weatherbug.com/news/State-Farm-Discontinuing-72,000-Home-Policies-In-C"},"headline":"State Farm Discontinuing 72,000 Home Policies In California In Latest Blow To State Insurance Market","description":"State Farm is discontinuing 72,000 home policies in California starting this summer. ","image":["https://cms-assets-con.cdn.weatherbug.net/assets/contentitems/ed/ed7ee228-3d2b-4208-8ed3-32e0e46c8225/52e0ce98-d40a-4283-82d1-d0fe816ebf4b/f7bcbed4-2b9c-4c49-85a4-eb8499a6da3b.jpg"],"datePublished":"2024-03-22T03:42:34Z","dateModified":"2024-03-22T03:42:34Z","dateCreated":"2024-03-22T03:42:34Z","articleSection":"Weather News","keywords":"California,climate,insurance,map,maps,weather,wildfire","articleBody":"SACRAMENTO, Calif. (AP) — State Farm will discontinue coverage for 72,000 houses and apartments in California starting this summer, the insurance giant said this week, nine months after announcing it would not issue new home policies in the state
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\r\nThe Illinois-based company, California's largest insurer, cited soaring costs, the increasing risk of catastrophes like wildfires and outdated regulations as reasons it won’t renew the policies on 30,000 houses and 42,000 apartments, the Bay Area News Group reported Thursday.
\r\n
\r\n“This decision was not made lightly and only 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,” the company said in a statement Wednesday.
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\r\n“State Farm General takes seriously our responsibility to maintain adequate claims-paying capacity for our customers and to comply with applicable financial solvency laws,” it continued. “It is necessary to take these actions now.”
\r\n
\r\nThe move comes as California's elected insurance commissioner undertakes a yearlong overhaul of home insurance regulations aimed at calming the state's imploding market by giving insurers more latitude to raise premiums while extracting commitments from them to extend coverage in fire-risk areas, the news group said.
\r\n
\r\nThe California Department of Insurance said State Farm will have to answer question from regulators about its decision to discontinue coverage.
\r\n
\r\n“One of our roles as the insurance regulator is to hold insurance companies accountable for their words and deeds,” Deputy Insurance Commissioner Michael Soller said. “We need to be confident in State Farm’s strategy moving forward to live up to its obligations to its California customers.”
\r\n
\r\nIt was unclear whether the department would launch an investigation.
\r\n
\r\nLast June, State Farm said it would stop accepting applications for all business and personal lines of property and casualty insurance, citing inflation, a challenging reinsurance market and “rapidly growing catastrophe exposure.”
\r\n
\r\nThe company said the newly announced cancellations account for just over 2% of its California policies. It did not say where they are located or what criteria it used to determine that they would not be renewed.
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\r\nCopyright 2024 The Associated Press. All rights reserved. 
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\r\n___
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\r\nImage: Homes leveled by the Camp Fire line a development on Edgewood Lane in Paradise, Calif., on Nov. 12, 2018. State Farm will discontinue coverage for 72,000 houses and apartments in California starting summer 2024, the insurance giant said. The Illinois-based company, California's largest insurer, cited soaring costs, the increasing risk of catastrophes like wildfires and outdated regulations as reasons it wont renew the policies on 30,000 houses and 42,000 apartments, the Bay Area News Group reported Thursday, March 21, 2024. (AP Photo/Noah Berger, File)","author":{"@type":"Person","name":"By The Associated Press","url":"https://www.weatherbug.com"},"publisher":{"@type":"Organization","name":"WeatherBug","logo":{"@type":"ImageObject","url":"https://www.weatherbug.com/images/sharing/f1ff28ba-6f06-4745-a782-011a20397e16.png"}}} {"@context":"https://schema.org","@type":"WebSite","mainEntityOfPage":{"@type":"WebPage","@id":"https://www.weatherbug.com/news/State-Farm-Discontinuing-72%2C000-Home-Policies-In-C","relatedLink":"https://www.weatherbug.com/news/State-Farm-Discontinuing-72%2C000-Home-Policies-In-C"},"name":"WeatherBug","url":"https://www.weatherbug.com/news/State-Farm-Discontinuing-72%2C000-Home-Policies-In-C","headline":"State Farm Discontinuing 72,000 Home Policies In California In Latest Blow To State Insurance Market","description":"State Farm is discontinuing 72,000 home policies in California starting this summer. ","dateModified":"2024-03-22T03:42:34Z","publisher":{"@type":"Organization","name":"WeatherBug","url":"https://www.weatherbug.com","sameAs":["https://www.facebook.com/WeatherBug","https://instagram.com/WeatherBug","https://www.linkedin.com/company/weatherbug","https://www.pinterest.com/weatherbug","https://twitter.com/WeatherBug","https://www.youtube.com/user/WeatherBugVideo"],"logo":{"@type":"ImageObject","url":"https://www.weatherbug.com/images/logos/weatherbug_logo_620x447.png"}},"author":{"@type":"Organization","name":"WeatherBug","url":"https://www.weatherbug.com","sameAs":["https://www.facebook.com/WeatherBug","https://instagram.com/WeatherBug","https://www.linkedin.com/company/weatherbug","https://www.pinterest.com/weatherbug","https://twitter.com/WeatherBug","https://www.youtube.com/user/WeatherBugVideo"],"logo":{"@type":"ImageObject","url":"https://www.weatherbug.com/images/logos/weatherbug_logo_620x447.png"}}} {"@context":"https://schema.org","@type":"Organization","name":"WeatherBug","logo":"https://www.weatherbug.com/images/logos/weatherbug_logo_620x447.png","url":"https://www.weatherbug.com","sameAs":["https://www.facebook.com/WeatherBug","https://instagram.com/WeatherBug","https://www.linkedin.com/company/weatherbug","https://www.pinterest.com/weatherbug","https://twitter.com/WeatherBug","https://www.youtube.com/user/WeatherBugVideo"]} ```