State Farm General Insurance Company announced in March that it plans to non-renew about 30,000 property insurance and 42,000 commercial apartment policies in California.
Recent filings with the California Department of Insurance show where the nonrenewals will be concentrated.
State Farm wrote in state filings that it would not renew policies “that present the most substantial wildfire or fire following earthquake hazards, or that are in areas of significant concentration.”
In some areas, like the Hollywood Hills, Rolling Hills Estates and Duarte, less than 1% of policies won’t be renewed.
However, other areas weren’t as lucky.
In Brentwood, for example, about 61.5% of State Farm policies won’t be renewed. In Bel-Air, that percentage increases to 67.4%
Here is the complete list of zip codes where State Farm will not renew policies.
It’s important to note that nonrenewal is not canceling. Customers affected by the decision will retain coverage until their current contract is up. The company said those impacted will be notified between July 3 and Aug. 20.
State Farm, California’s largest insurer as of 2022, said the move would impact 2% of its total policies in the state and was made to ensure “long-term sustainability.”
“This decision was not made lightly and only after careful analysis of State Farm General’s financial health, which continues to be impacted by inflation, catastrophe exposure, reinsurance costs, and the limitations of working within decades-old insurance regulations. State Farm General takes seriously our responsibility to maintain adequate claims-paying capacity for our customers and to comply with applicable financial solvency laws. It is necessary to take these actions now,” the company said in a statement.
The company also said it will continue working with the Department of Insurance, Gov. Gavin Newsom and other policymakers as they pursue reforms “to establish an environment in which insurance rates are better aligned with risk.”
In February, the state’s insurance department announced proposals toreform California’s insurance regulations.The new proposal would allow insurance companies to switch from using historical data to catastrophe modeling, meaning companies would calculate projections of future risk when raising rates and pass on the cost of reinsurance to consumers.
The new changes are expected to take effect at the end of the year.
Last year,State Farmannounced it would stop accepting new insurance applications for all business and personal property in California.
Since then, othercompanies like Allstatehave announced similar moves.
FAQs
California ZIP codes where State Farm policies will be non-renewed
| ZIP code | County | Non-renewed policies |
|---|
| 91302 | Los Angeles | 1,090 |
| 95033 | Santa Clara, Santa Cruz | 1,035 |
| 94549 | Contra Costa | 956 |
| 95409 | Sonoma | 758 |
11 more rowsApr 11, 2024
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.
Is State Farm not renewing policies in California? ›
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.
Is State Farm dropping homeowners insurance in California? ›
State Farm said it is dropping policies across California for financial reasons and is ending coverage in areas with wildfire hazards, among other factors.
Does zip code affect car insurance California? ›
Your car insurance costs will change based on your vehicle, driving record and location — right down to your ZIP code. If you were to move across town, your car insurance premium could get cheaper or more expensive, depending on your new ZIP code. Choose a city below to find out more.
Why did State Farm deny my claim? ›
If there is a lack of evidence, or the evidence does not seem credible, State Farm may deny your insurance claim. For instance, if you claim automobile damages but do not have photographic proof, or estimates for the repair from a reputable repair company, State Farm may be suspicious of the claim and deny it.
What did State Farm do wrong? ›
Attorneys had accused State Farm in a federal court in Missouri of overcharging on policies. The settlement involves about 450,000 policy holders who bought universal life insurance from the Bloomington-based company between 1986 and 1993.
Why is State Farm dropping customers? ›
In a statement, the big insurance carrier says: "The decision was not made lightly and only after careful analysis of State Farm General's financial health, which continues to be impacted by inflation, catastrophe exposure, reinsurance costs and the limitations of working within decades-old-insurance regulations."
Did State Farm cut 72000 California policies citing wildfire risk? ›
State Farm announced on March 26 that it was cutting 72,000 policies in California , citing wildfire risks, just two weeks after California's insurance regulator proposed allowing the use of catastrophe (Cat) modeling to improve availability .
Is State Farm writing auto insurance in California? ›
State Farm is reducing its presence in California's insurance market, but this primarily affects business and personal lines, such as property and casualty insurance, not auto insurance directly. You don't have to worry because State Farm leaving California will not affect your auto insurance policy.
After you've been nonrenewed, you'll likely need to get coverage from a new insurer. Car insurance is required nearly nationwide, and there's no grace period after nonrenewal. Your letter of nonrenewal will list the date at which your current policy ends, so it's crucial that your new policy takes effect before then.
What happens to State Farm agents in California? ›
State Farm independent contractor agents licensed in California will continue to service policies not impacted by these decisions. State Farm General's May 2023 decision regarding new applications remains unchanged. We will evaluate the need for any additional business actions as market conditions change.
Why did State Farm cancel my homeowners policy? ›
"This decision was not made lightly and only after careful analysis of State Farm General's financial health, which continues to be impacted by inflation, catastrophe exposure, reinsurance costs, and the limitations of working within decades-old insurance regulations," the company said in a statement Wednesday.
Who is still selling homeowners insurance in California? ›
Hippo: Our pick for fast quotes
- Hippo: Our pick for fast quotes.
- Liberty Mutual: Our pick for discounts.
- Farmers: Our pick for customizable coverage.
- Progressive: Our pick for bundling.
- Nationwide: Our pick for inclusive standard coverage.
- USAA: Our pick for club members.
Communities, fire districts and others are doing their part, too. But some insurance companies citing growing risks and costs have paused or stopped writing new policies in California, causing a crisis of home-insurance affordability and availability.
What is zip code does not match billing address? ›
The most common cause of this problem is an old zip code assigned to the card itself. Even though you have updated your address with the bank, they may not sync your new address to the credit/debit card. Try the old/outdated postal code(s) on the payment, and it will likely go through.
What does the zip in the zip code stand for zone improvement plan? ›
A ZIP Code (an acronym for Zone Improvement Plan) is a system of postal codes used by the United States Postal Service (USPS). The term ZIP was chosen to suggest that the mail travels more efficiently and quickly (zipping along) when senders use the code in the postal address.
Is State Farm dropping 1600 homeowners policies in Pacific Palisades? ›
In Pacific Palisades, according to the letter, 69.4% of the 2,342 policyholders — or about 1,600 — will lose coverage. In Brentwood, 61.5% of State Farm's 2,114 customers there will lose their policies, or about 1,300 non-renewals.
What zip code is 95409? ›
95409, Santa Rosa, CA Zip Code Map - MapQuest.
