Property owners across the state have seen their policies dropped by insurance companies due to fire danger, but experts say the state’s regulations are more impactful than the risk posed by natural disasters.
After State Farm and Allstate both declared in May they will no longer accept new homeowners’ policies in California, many property owners and renters were left wondering what options they have.
State Farm said in a statement May 26 announcing the change that the decision was made “due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market.”
The company is retaining its current policy holders and remains the only one which hasn’t canceled any policies since 2017 for wildfire risk and voiced its commitment to serving the Golden State—the largest insurance market in the world—in the press release….