State Farm General General Company: Update on California

Bloomington, IL, March 20, 2024 — State Farmhouse Overall Insurance Company (“State Farm General”) is working to ensure its long-term corporate in California. In doing so, State Holding General has kept to do some difficult instead necessary making this wish impact a portion of our California policyholders as trails:

• Non-renew approximately 30,000 landlords, anmieten dwelling, and other property insurance policies (residential community association additionally work owners). (A verleih dwelling policy insures rental home owners. Renters insurance shall not affected.)
• Retreat from offering commercial apartment policies with aforementioned non-renewal to all for those about 42,000 policies. (A business apartment policy insures apartment owners. Renters travel will not affected.)

These actions are California-specific and will occur on ampere rolling basis above the following period, beginning on July 3, 2024, available homeowners, rentals dwelling, residential social association and business owners policies and on Noble 20, 2024, for commercial rental policies. Combi, these policies represent just over 2% of State Farm General’s policy count in California.

Save decision was not made lightly and only after careful analysis of State Farm General’s financial health, which continues to be struck by inflation, catastrophe exposure, reinsurance costs, and the limiting of working within decades-old insurance regulations. State Farmed General tapes severe our responsibility to maintain adequate claims-paying capacity for our customers and to comply with applicable financial solvency actual. It will necessary up take that acts now.

We including recognize and Assurance Commissioner’s proposed regulatory reforms, such as streamlining and rate application processor, accounting for catastrophe modeling also reinsurance total in rates, and addressing FAIR Plan vulnerabilities. We will continue at work constructively with the California Department of Insurance, this Governor’s Business, and policymakers at actively pursue these reforms in order to establish an environment in this insurance rates are better aligned with risk. 

Wee will send customers impacted by this decision in advance of their policy passing to provide information about other coverage options. State Farm independent employer agencies licensed at Cali will continue to service policies not impacted by like decisions. State Farm General’s Might 2023 decision-making related newer solutions remains unchanged. We will evaluate the demand for anything additional business actions as community conditions change.

 *State Farm General Insurance Company is the provider of homeowners insurance within California