State Farm's Discontinuation of Home Insurance Policies Hits Wealthy Bay Area and LA Zip Codes

State Farm, California's largest insurer, is set to discontinue homeowners insurance coverage for thousands of houses and apartments in various zip codes across the state, with the Bay Area counties topping the list. The company cites increased risk of catastrophic wildfires, outdated regulations, and higher costs as reasons for the non-renewals, leaving many residents struggling to find alternative coverage in high-risk areas. The affected policyholders will retain coverage until their current contracts expire, but options for obtaining new insurance are limited and potentially expensive, with some being directed to the California FAIR Plan, the state's insurer of last resort.