State Farm's Home Insurance Non-Renewals in California: A Growing Crisis

State Farm, California's largest homeowner's insurance provider, is not renewing policies for some Bay Area residents, affecting ZIP codes in Orinda, Contra Costa County, Santa Clara, Santa Cruz counties, and Sonoma County due to financial challenges, inflation, catastrophe exposure, and reinsurance costs. Homeowners in high-risk areas will have to buy into the expensive California FAIR plan for fire coverage, as insurers struggle with California's premium limits and claim payouts, primarily due to wildfires. The California Department of Insurance is updating regulations to bring more policy options at competitive prices back to the state, but it could take a few years for the homeowner's insurance industry to stabilize.