State Farm won't renew homeowners coverage for 72,000 California homes and apartments (2024)

FAQs

Why did State Farm cancel my homeowners policy? ›

The insurer blames the rising risk of natural disasters like wildfires in California and the state's outdated regulations.

Your insurance company can cancel or non-renew your homeowner's policy for a few reasons, including nonpayment or increased risk surrounding your home. In some cases, an insurance company may stop selling policies in a certain area or non-renew policies in that area due to risk.

You're not required by law to have home insurance, but banks do require it as a condition of your mortgage. Home insurance can help you protect yourself from enormous financial loss. It can also help cover the cost of paying for bodily injury to others or damage to their property.

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.

State Farm General Insurance Company has announced that it will non-renew approximately 30,000 California homeowners, rental dwelling, and other property insurance policies.

A lapse in your coverage means that you are uninsured. It could be days or weeks, but the risk is the same; if something happens during the lapse period, you will not have any financial protection from homeowners insurance and will have to pay the expenses and losses out of pocket.

If your insurer nonrenewed or cancelled your policy because your house needs repairs or you filed too many claims, you may have difficulty finding an insurance company willing to insure your home.

Premiums After a residential policy has been in effect for sixty days, the insurance company can only cancel a policy for reasons specified by law, which include; nonpayment of premium, fraud , material misrepresentation , or physical changes in the insured property that increase any hazard insured against.

If at any time: you fail to pay the premium by the due date. you obtained the policy through misrepresentation or fraud. anyone insured on the policy violated the terms or conditions of the policy.

High rebuild costs, increasingly severe wildfires and high prices of reinsurance are all risks that insurance companies might be willing to take on. But only for the right price. Increases in insurance premiums in California are approved or denied by the state's elected insurance commissioner, Ricardo Lara.

What is the cheapest homeowners insurance in California? ›

The average cost of homeowners insurance in California homeowners is $1,405 a year, well below the national average. Allstate has the cheapest average home insurance rates in California at $886 a year. State Farm is the best home insurance company in California overall.

Why it's so difficult to find home insurance in California. From surging climate disasters to government regulations to ongoing problems with the supply chain, here's a rundown of the various issues plaguing California's home insurance market.

Insurance products in California are offered through AAA Northern California Insurance Agency, License #0175868, in Montana by AAA Montana, Inc., License #9756, in Nevada by AAA Nevada and in Utah by AAA Utah.

How much is homeowners insurance in California? The average cost of homeowners insurance in California is $1,383 per year, or roughly $115 a month, for an insurance policy with $300,000 in dwelling coverage.

What is a homeowners insurance refund check? You may receive a refund check from your prior homeowners insurance company if you cancel your policy before it expires, reimbursing you for the coverage you already paid for. You may also receive a refund in the event your lender makes a payment to your old insurer.

Living in a high-risk location, having hazardous home features, home maintenance issues, your home's history of insurance claims, and more can be reasons an insurance company may determine a house to be uninsurable.

If you've already paid your premium for the policy period in full, State Farm will refund the unused portion. State Farm does not impose a cancellation fee or penalty for early termination. Finally, it's important to remember that you don't need to cancel your policy just because you're going through some life changes.

Homeowners Insurance and Selling Your Home

If you sell your home, your insurance coverage will remain in effect until the final payoff is sent in by the mortgage company. Any excess escrowed insurance money will be paid back to you.