{"id":2388125,"date":"2025-01-09T03:45:02","date_gmt":"2025-01-09T08:45:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/state-farm-canceled-california-homeowners-insurance-policies-months-before-wildfires-washington-examiner\/"},"modified":"2025-01-09T03:47:19","modified_gmt":"2025-01-09T08:47:19","slug":"state-farm-canceled-california-homeowners-insurance-policies-months-before-wildfires-washington-examiner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/state-farm-canceled-california-homeowners-insurance-policies-months-before-wildfires-washington-examiner\/","title":{"rendered":"State Farm canceled California homeowners\u2019 insurance policies months before wildfires &#8211; Washington Examiner"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fstate-farm-canceled-california-homeowners-insurance-policies-months-before-wildfires-washington-examiner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2388125&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>State Farm has decided to cancel hundreds of homeowners\u2019 insurance\u2064 policies\u200c in California, particularly in areas that are now \u200dthreatened by \u2063wildfires. This\u200b decision, announced in March, \u200daffects 72,000 property\u2062 policies statewide, including\u2063 30,000 home insurance\u200b policies, with cancellations taking\u200d effect over the summer. The company has cited increased risks associated with a rise in wildfire frequency and\u2062 severity as\u2062 the rationale \u200bfor this move, claiming that California\u2019s regulations prevent \u2063them from\u2063 raising premiums sufficiently to cover\u200d these risks.<\/p>\n<p>Around 1,600 homes in Pacific Palisades have\u200b been affected \u2062by these cancellations. In a letter to California&#8217;s \u2064Insurance \u200dCommissioner, State \u2062Farm&#8217;s\u2063 CEO Denise Hardin stated that\u2064 thay needed to reduce their overall exposure due to meaningful underwriting losses. Other insurers have followed suit, exacerbating a crisis \u200cin \u2063homeowners\u2019\u200d insurance in the\u200c state and\u2063 forcing \u200daffected residents to look for alternatives like the \u200ccostly state-run FAIR Plan.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">State Farm canceled California homeowners&rsquo; insurance policies months before wildfires<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_1930301\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>State Farm canceled hundreds of homeowners&rsquo; <a href=\"https:\/\/www.washingtonexaminer.com\/opinion\/beltway-confidential\/2712292\/the-real-reason-state-farm-wont-sell-home-insurance-in-california-anymore\/\" target=\"_blank\" rel=\"noopener\" title=\"\">insurance policies<\/a> for residents in many of the same areas now in the path of the Southern <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/california\/\" target=\"_blank\" rel=\"noopener\" title=\"\">California<\/a> wildfires.&nbsp;<\/p>\n<div class=\"article-paywall\">\n<p>The insurance company&rsquo;s reasoning for canceling policies for people living in Pacific Palisades in <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/los-angeles\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Los Angeles<\/a> County, California, was due to elevated concerns associated with an increase in the frequency and magnitude of <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/wildfires\/\" target=\"_blank\" rel=\"noopener\" title=\"\">wildfires<\/a> in the state, according to <em><a href=\"https:\/\/www.newsweek.com\/california-insurer-canceled-policies-months-before-los-angeles-wildfires-2011521\" target=\"_blank\" rel=\"noreferrer noopener\">Newsweek<\/a><\/em>.&nbsp;<\/p>\n<p>The decision was announced in March, claiming it would cancel 72,000 property policies in California, 30,000 of which were home insurance policies, the <em>Los Angeles Times<\/em> reported. The cancellations went into effect over the summer. Around 1,600 homes in Pacific Palisades were victims of State Farm&rsquo;s policy <a target=\"_blank\" href=\"https:\/\/www.latimes.com\/california\/story\/2024-04-10\/westside-l-a-hit-hard-as-state-farm-cancels-home-insurance\" rel=\"noreferrer noopener\">cancellations<\/a>.&nbsp;<\/p>\n<p>The insurance company&rsquo;s decision was deemed a necessary business strategy to prevent &ldquo;financial failure&rdquo; allegedly due to California state laws that prevented companies from raising premiums to match the elevated risk, <em>Newsweek<\/em> reported. Other insurance companies followed State Farm&rsquo;s decision, which has resulted in a significant homeowner insurance crisis in the state as residents have been limited in their options.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Last year, State Farm canceled 1,600 policies in Pacific Palisades because the state would not allow them to raise premiums enough to cover their exposure. The affected homeowners would then likely have to rely on the state-run FAIR Plan, an expensive last-resort insurance&hellip; <a href=\"https:\/\/t.co\/xe9bLPtaN3\">pic.twitter.com\/xe9bLPtaN3<\/a><\/p>\n<p>&mdash; Laura Powell (@LauraPowellEsq) <a href=\"https:\/\/twitter.com\/LauraPowellEsq\/status\/1877143625588682940?ref_src=twsrc%5Etfw\">January 9, 2025<\/a><\/p><\/blockquote>\n<p><script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script> <\/div>\n<\/figure>\n<p>State Farm&rsquo;s president and chief executive, Denise Hardin, rationalized her corporation&rsquo;s decision <a target=\"_blank\" href=\"https:\/\/www.documentcloud.org\/documents\/24537687-state-farm-zip-codes\/?responsive=1&amp;title=1\" rel=\"noreferrer noopener\">in a letter to California Insurance Commissioner Ricardo Lara<\/a>, explaining the need to reduce the company&rsquo;s &ldquo;overall exposure.&rdquo; She explained that the company had endured &ldquo;large underwriting losses.&rdquo;<\/p>\n<p>&ldquo;As we discussed, SFG&rsquo;s capital position has severely deteriorated, and we are increasingly concerned about its financial well-being,&rdquo; Hardin wrote. &ldquo;Although there haven&rsquo;t been significant wildfire losses for several years, windstorm catastrophes in early 2023 and increasing trends in non-catastrophe water losses and liability claims (especially commercial lines and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/2-more-insurers-fleeing-california-more-than-50000-homeowners-to-lose-coverage\/\" title=\"2 Insurers Leaving California, 50,000 Homeowners Losing Coverage\">personal umbrella policies<\/a>), without the additional premium needed to support those cost increases, have generated large underwriting losses.&rdquo;&nbsp;<\/p>\n<p>She then elaborated on State Farm&rsquo;s financial challenges in the state by highlighting other expenses, such as &ldquo;construction cost inflation,&rdquo; and emphasizing that the company&rsquo;s financial strength was much weaker than in 2016.<\/p>\n<p>&ldquo;SFG has managed its policy growth by limiting writing in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fmr-asst-health-secy-lockdowns-on-the-table-if-more-people-dont-get-vaccinated\/\" title=\"Fmr. Asst. Health Secy.: Lockdowns on the table if more people don\u2019t get vaccinated\">high-risk areas<\/a> for many years, and more recently, by ending all new policy sales,&rdquo; Hardin added. &ldquo;However, SFG&rsquo;s <a href=\"https:\/\/amzn.to\/3YuVZYV\">risk exposure grew tremendously<\/a> in the last few years, with construction cost inflation being a major driver. Taken together, these trends have resulted in a surplus of less than 50 cents for every dollar of risk (as measured by net written premium) we face today, which makes SFG&rsquo;s financial strength less than a quarter of what it was at year-end 2016.&rdquo;<\/p>\n<p>She then explained that State Farm was reluctant to take such a drastic measure. Still, she viewed it as necessary for the company&rsquo;s finances and hoped that doing so would help minimize the impact of such vital decisions by the company.<\/p>\n<p>&ldquo;We must now take action to reduce our overall exposure to be more commensurate with the capital on hand to cover such exposure, as most insurers in California have already done,&rdquo; she wrote. &ldquo;We have been reluctant to take this step, recognizing how difficult it will be for impacted policyholders, in addition to our independent contractor agents who are small business owners and employers in their local California communities. Rebuilding capital, even with higher rates, will take some time. We are striving to minimize the impact of the necessary actions that must be taken.&rdquo;<\/p>\n<p>She concluded by expressing a need for reform while maintaining that she still wanted a company that was considered empathetic and would be available to aid and assist policyholders in need. However, she prioritized avoiding a &ldquo;financial failure&rdquo; for State Farm.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><\/strong><\/a><\/p>\n<p>&ldquo;The swift capital depletion of SFG is an alarm signaling the grave need for rapid and transformational action, including the critical need for rapid review and approval of currently pending and future rate filings,&rdquo; she wrote. &ldquo;We take very seriously our responsibility to be there for customers who experience a claim and our actions are with that goal at the fore. A financial failure of SFG will detrimentally impact the entire market, an outcome we are all trying to avoid.&rdquo;<\/p>\n<p>The wildfires in Southern California are among the costliest and most destructive in the country&rsquo;s history. As of Wednesday, multiple reports estimated the current cost of damage and subsequent economic losses from the fires between $52 billion and $57 billion.<\/p>\n<\/div>\n<p> <script>!function(){var g=window;g.googletag=g.googletag||{},g.googletag.cmd=g.googletag.cmd||[],g.googletag.cmd.push(function(){g.googletag.pubads().setTargeting(\"has-featured-video\",\"true\")})}();<\/script><script>var _bp=_bp||[];_bp.push({\"div\":\"Brid_1930301\",\"obj\":{\"id\":\"27789\",\"width\":\"1280\",\"height\":\"720\",\"stickyDirection\":\"below\",\"video\":\"1930301\"}});<\/script><script defer src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>State Farm canceled homeowners&#8217; insurance in California before wildfires<\/p>\n","protected":false},"author":2677,"featured_media":2388126,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/01\/la-california-wildfires-jan-8-25.webp","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[46519,48183,48184,48182,32076],"class_list":["post-2388125","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-california-wildfires","tag-homeowners-insurance","tag-insurance-cancellation","tag-state-farm","tag-washington-examiner"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/01\/la-california-wildfires-jan-8-25.webp","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2388125","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2677"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2388125"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2388125\/revisions"}],"predecessor-version":[{"id":2388129,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2388125\/revisions\/2388129"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2388126"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2388125"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2388125"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2388125"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}