State Farm's Home Insurance Exodus: Impact on California Residents

State Farm is not renewing home insurance policies for thousands of homeowners in upscale neighborhoods in Los Angeles County, including Bel-Air and Pacific Palisades, due to financial concerns and high wildfire risk. This move adds to the existing home insurance crisis in California, prompting some residents to turn to the FAIR Plan as a last resort. State officials are proposing new rules to address the crisis, including allowing insurers to raise rates to cover reinsurance costs and projected losses from catastrophic fires while requiring them to provide coverage for more homes in high-risk areas.