State Farm Announces Zip Codes Affected by Policy Non-Renewals in Southern California
State Farm plans to non-renew about 30,000 property insurance and 42,000 commercial apartment policies in California, focusing on areas with substantial wildfire or fire following earthquake hazards. The nonrenewals will impact 2% of its total policies in the state, and affected customers will retain coverage until their current contract is up. The decision was made to ensure long-term sustainability due to financial challenges, inflation, catastrophe exposure, and reinsurance costs. The company is working with policymakers to pursue reforms in insurance regulations, including allowing companies to switch to catastrophe modeling for rate calculations.