State Farm's Decision Not to Renew 72,000 California Insurance Policies Exacerbates State's Crisis
State Farm General Insurance will not renew 72,000 homeowner insurance policies in California, citing the need to maintain adequate claims-paying capacity and comply with financial solvency laws. The decision has raised concerns about the company's financial situation and comes amid a statewide insurance crisis, with thousands of property owners struggling to find affordable coverage. The lack of options has led many to turn to the FAIR Plan, putting a financial strain on the state insurer. Insurance Commissioner Ricardo Lara has proposed new rules to address the crisis, aiming to align insurance rates with risk and provide coverage for more homes in high-risk areas.