State Farm Won’t Renew Coverage , for 72,000 Homeowners in California.
The news comes nine months after the insurance giant announced that it wouldn't issue any new home policies in California.
The news comes nine months after the insurance giant announced that it wouldn't issue any new home policies in California.
State Farm cited rising costs, the heightened risk of wildfires and certain regulations as reasons for not renewing the 72,000 policies, CBS News reports.
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State Farm cited rising costs, the heightened risk of wildfires and certain regulations as reasons for not renewing the 72,000 policies, CBS News reports.
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This decision was not made lightly and only after careful analysis of State Farm General's financial health... , State Farm, via statement.
... which continues to be impacted by inflation, catastrophe exposure, reinsurance costs, and the limitations of working within decades-old insurance regulations, State Farm, via statement.
State Farm General takes seriously our responsibility to maintain adequate claims-paying capacity for our customers and to comply with applicable financial solvency laws, State Farm, via statement.
It is necessary to take these actions now, State Farm, via statement.
However, both the insurance company and the California Department of Insurance will have to answer to regulators.
One of our roles as the insurance regulator is to hold insurance companies accountable for their words and deeds, Michael Soller, Deputy Commissioner of the Communications and Press Relations Branch, via CBS News.
We need to be confident in State Farm's strategy moving forward to live up to its obligations to its California customers, Michael Soller, Deputy Commissioner of the Communications and Press Relations Branch, via CBS News.
State Farm did not disclose the locations of the discontinued policies or the criteria it used for determining which policies wouldn't be renewed.
It is not yet clear if an investigation will be launched
