State Farm Drops 72,000 Home Policies in California

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72,000 houses and apartments in California due to soaring costs, increasing risk of catastrophes like wildfires, and outdated regulations. 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 California Department of Insurance said State Farm will have to answer questions from regulators about its decision to discontinue coverage, and it was unclear whether the department would launch an investigation.