State Farm dropping policies in these California ZIP codes (2024)

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What zip codes is State Farm insurance dropping in California? ›

LOS ANGELES (KABC) -- In a state with a very high risk of wildfires, many California homeowners have insurance policies to cover fire damage, but thousands who have State Farm will soon be dropped. A total of 72,000 State Farm policies will be canceled in the state, 30,000 of which are homes.

State Farm announced it will not renew approximately 30,000 homeowners' policies in California. Homeowners who live in areas at high risk of catastrophes like wildfires will have to buy into the California FAIR plan subsidized by the state. It's expensive and offers only fire coverage.

Several major insurers, meanwhile, including State Farm, Farmers and Allstate, have limited their exposure in California by cutting back on the number of new policies they issue or tightening underwriting standards. State Farm, for example, announced in March it would not renew 72,000 policies.

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State Farm, California's largest home insurance company, announced it would be discontinuing coverage for 72,000 homes and apartment policies in the state starting this summer. The insurer blamed inflation, regulatory costs, and the increasing risks from catastrophes for its decision to scale back in the blue state.

These non-renewals are California-specific and will happen over the next year on a rolling basis. This decision comes after State Farm announced in May 2023 that it would no longer be accepting new applications for home and business owners.

Last month, State Farm, the Illinois-based company and California's largest insurer, cited soaring costs and the increasing risk of natural disasters — like wildfires and outdated regulations — as reasons it won't renew the policies of thousands of homes.

Allstate announced in November 2022 that it would "pause new homeowners, condo and commercial insurance policies in California to protect current customers," the Associated Press reported in June.

Is Geico pulling out of California? ›

Over the last year, several large insurance companies, such as GEICO, Allstate, and most surprisingly, Liberty Mutual have pulled out of California's auto insurance market. The conditions in the state have led the insurers to believe that California drivers are too expensive to insure.

California's already strained property insurance market is facing a new challenge as two more insurers, Tokio Marine America Insurance Co. and Trans Pacific Insurance Co., plan to withdraw from the wildfire-prone state entirely starting in July.

State Farm to drop thousands of California policy holders this year. California's largest home insurer, State Farm, plans to drop tens of thousands of policyholders later this year because of significant wildfire risk. Those customers will not have their policies renewed once their current contract is up.

California's largest home insurer State Farm raises rates by 20%

It's important to know some of the reasons State Farm will deny claims. They might claim that you missed a payment, have lapsed coverage, insufficient evidence, lack of medical records, lack of witnesses, that you had a previous injury, that you really aren't that hurt, etc.

State Farm is the largest insurance company in California and the United States as a whole. One in five homes in the state is covered by State Farm. The Illinois-based insurer said the cancellations will affect about 2% of its policyholders in California.