State Farm to Drop Tens of Thousands of California Property Insurance Policies
State Farm, California's largest property insurer, will not renew around 72,000 property and commercial apartment policies, citing higher construction costs, growing risk from catastrophic events, and challenges related to insurance regulations. The decision follows the company's halt on new applications for property and business policies in May. The California Department of Insurance has announced regulatory changes, and State Farm has agreed to work with the agency to align insurance rates with risk. The non-renewals will begin in July for homeowners policies and in August for commercial ones, affecting about 2% of the company's footprint in the state.