State Farm Drops 72,000 Home Policies in California Amid Insurance Crisis

State Farm will discontinue coverage for 72,000 houses and apartments in California due to soaring costs, increasing risk of catastrophes like wildfires, and outdated regulations, impacting its financial health. This decision comes as California’s insurance commissioner works on an overhaul of home insurance regulations. The California Department of Insurance will question State Farm about its decision, and it remains unclear whether an investigation will be launched. Last June, State Farm announced it would stop accepting applications for property and casualty insurance, citing inflation and growing catastrophe exposure.