State Farm to Exit Homeowner Renewal Policies in California
Starting in July, State Farm will begin a phased non-renewal of 72,000 California policies, impacting community associations, homeowners, commercial apartments, and businesses. This move follows similar actions by Farmers, Kemper, and other insurers. State Farm will offer alternative coverage options to those affected, citing outdated insurance regulations, inflation, natural disasters, and reinsurance rates as the reasons for this decision. The withdrawal of commercial apartment policies will commence on August 20. State Farm will continue to assess the need for further business actions based on evolving market conditions. These policies account for just over 2% of State Farm General’s policy count in California.