State Farm, California’s largest insurance company, announced it will provide updates to home insurance policyholders affected by the deadly wildfires across Los Angeles County. The company had previously planned to eliminate these policies.
State Farm’s decision applies to insurance policies held by homeowners, rental property owners, and housing associations, including condominium associations.
California Department of Insurance Secretary Ricardo Lara welcomed the news.
“I applaud State Farm for answering my call and setting the direction for all insurance companies to follow. All eyes are now on insurance companies, including me. “I have called on insurance companies to heed my call to honor policies that were not renewed in the areas I have protected with suspension powers, based on last week’s notice,” Lara said in a statement. .
“Insurance companies need to do the right thing and stand by their customers. We will continue to work to ensure your claims are paid fairly, quickly and completely.”
In the wake of the deadly wildfires, Governor Lara last week announced a one-year moratorium on insurance companies from issuing new cancellations or non-renewal notices. The moratorium applies regardless of whether the homeowner has suffered a loss, and Lara announced plans to expand its boundaries.
Still, the Insurance Commissioner does not have the authority to suspend nonrenewal notices previously sent to policyholders.
Last March, State Farm announced plans to eliminate about 30,000 property and casualty policies and 42,000 commercial apartment policies in California. This followed the company’s decision in 2023 to stop accepting new insurance applications for all business and personal property in the state.
So far, other insurance companies have not announced plans to offer renewals to policyholders affected by the wildfires.
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