Following news earlier this month that State Farm would not renew some 72,000 homeowners insurance policies in California, we’re now getting a better look at just what parts of the state are set to be most impacted. Unfortunately, it’s not looking good for the Bay Area and Los Angeles.
According to the California Department of Insurance, those SoCal areas include several West L.A. neighborhoods and areas in or near the Santa Mountains, including Bel-Air, Pacific Palisades and Woodland Hills.
The highest number of non-renewals for a single ZIP code is in Orinda, where 1,703 policies won’t be renewed. That’s 55 percent of the Bay Area city’s homeowners policies.
Rancho Santa Fe, in San Diego County, also appears to be heavily impacted, per the map below. Neighboring Lakeside and Lakeview and sections of San Diego proper are also noted as areas with large numbers of non-renewals.
Citing the increased risk of wildfires as a reason it won’t renew the policies on 30,000 houses and 42,000 apartments, the insurance company issued the following statement:
“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. “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.”
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