All articles tagged with #state farm
An Arkansas jury found that State Farm underpaid customers for totaled cars by using outdated software that undervalued vehicle replacement costs, leading to a class action lawsuit. The case highlights issues with how insurance companies calculate payouts, with similar lawsuits emerging in other states.
State Farm refutes Governor Pritzker's claims that its 27% homeowners' insurance rate hike in Illinois is unjustified and suggests the company is unfairly shifting costs out of state, emphasizing that the increase is due to inflation and severe weather, while regulators seek more transparency amid limited powers to intervene.
California's insurance regulator has launched a formal investigation into State Farm due to numerous complaints about its handling of wildfire claims in Los Angeles, citing issues like inconsistent communication and record-keeping that hinder recovery and erode trust.
Erin Walters from Maple Grove, Minnesota, was denied car insurance renewal by State Farm due to the high theft rates associated with her 2019 Hyundai Elantra, a problem exacerbated by social media trends. Walters, who has never experienced theft, was advised to install a push-to-start ignition to be insured. She faced similar rejections from Progressive, highlighting a broader issue affecting Hyundai and Kia owners. Walters believes the manufacturer should recall and address the security flaws.
Rising home insurance costs and policy cancellations, driven by climate change and increasing natural disasters, are leaving more homeowners without coverage. This trend is particularly affecting those in disaster-prone areas like California, where insurers like State Farm are pulling out, leaving residents with few and expensive alternatives. The issue is exacerbated by regulatory constraints and the rising cost of reinsurance, making it difficult for homeowners to find affordable policies.
State Farm is dropping over 2,000 policyholders in 50 San Diego County zip codes, prompting affected homeowners to seek new insurance options. U.S. News & World Report lists Amica, USAA, Nationwide, Lemonade, and Chubb as some of the best insurance providers in the region, each with different coverage options and star ratings. Homeowners are advised to start shopping around as their current contracts expire during the summer months.
State Farm is dropping 30,000 homeowner’s insurance policies in California, affecting residents in 50 zip codes across San Diego County due to inflation, regulatory costs, and increasing catastrophe risks. Former San Diego Councilmember Scott Sherman attributes the issue to politics and regulatory restrictions, leading to limited options and soaring premiums for affected policyholders. Governor Gavin Newsom's emergency declaration aims to address the situation, with impacted customers retaining coverage until their current contracts expire.
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.
State Farm is canceling 72,000 policies in California, including 30,000 homes, due to high risk and financial concerns, impacting upscale neighborhoods in Los Angeles County. The decision follows record-breaking wildfire seasons and industry losses. The company cites the need to reduce exposure and financial strength. The cancellation affects various SoCal zip codes, prompting concerns about insurance options and coverage for homeowners in high-risk areas.
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.
State Farm, California's largest insurer, is set to discontinue homeowners insurance coverage for thousands of houses and apartments in various zip codes across the state, with the Bay Area counties topping the list. The company cites increased risk of catastrophic wildfires, outdated regulations, and higher costs as reasons for the non-renewals, leaving many residents struggling to find alternative coverage in high-risk areas. The affected policyholders will retain coverage until their current contracts expire, but options for obtaining new insurance are limited and potentially expensive, with some being directed to the California FAIR Plan, the state's insurer of last resort.
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.
Homeowners insurance companies are leaving California due to state regulations preventing them from raising rates to reflect inflation and market conditions. State Farm is non-renewing existing policies and getting out of apartment policies entirely, while American National is also withdrawing from the state. The state's "protections" for policyholders affected by wildfires are not effectively addressing the insurance crisis, leading more Californians to rely on the FAIR Plan, an insurer of last resort. The state's bureaucratic hurdles and lack of competition are distorting the marketplace, and despite warnings, the state's leaders have not taken the necessary actions to address the insurance problem.
California's insurance commissioner Ricardo Lara declared a "crisis" after State Farm announced the discontinuation of 72,000 home and apartment policies in the state, citing inflation, regulatory costs, and increasing catastrophe risks. Lara is pushing for major insurance reforms to stabilize premium costs and expand coverage, but critics argue that more intervention is needed. This move follows similar actions by other insurance companies due to wildfires and higher costs of doing business in California.
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.