By: Neil O’donnell
State Farm recently announced that it would stop coverage for 72,000 houses and apartments in California, citing rising costs and increased catastrophic risks as the reason. The decision affects 30,000 houses and 42,000 apartments. The announcement comes nine months after State Farm announced it would not issue new home policies in California. And now, beginning in July, State Farm will cut the 72,000 policies.
State Farm said that “the decision was not made lightly”. The insurer blamed increased risks from catastrophes for its decision to scale back.
But for these 72,000 policyholders, the jingle “Like a Good Neighbor” no longer applies, and similar cuts may come to other states. It’s a precarious time for homeowners affected.
If you are impacted by these types of insurer decisions, act quickly to obtain replacement coverage and never allow a lapse in coverage.