State Farm to stop insurance coverage for new California homeowners effective May 27

Published on

STATEWIDE – State Farm, the largest property, casualty, and auto insurance provider in the United States, announced Friday they will cease accepting new applications including all business and personal lines property and casualty insurance, effective May 27, 2023.

The company says they made this decision due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market.

CA one-year moratorium on cancellation

In 2021, the California Department of Insurance issued a mandatory one-year moratorium on insurance companies canceling or non-renewing residential insurance policies in certain areas within or adjacent to a fire perimeter after a declared state of emergency is issued by the Governor.

“Losing your insurance should be the last thing on someone’s mind after surviving a devastating fire,” said CA Department of Insurance Commissioner Ricardo Lara in 2021. “This law gives millions of Californians breathing room and hits the pause button on insurance non-renewals while people recover.”

State Farm says they take seriously their responsibility to manage risk.

“We recognize the Governor’s administration, legislators, and the California Department of Insurance (CDI) for their wildfire loss mitigation efforts,” said the news release. “However, it’s necessary to take these actions now to improve the company’s financial strength.”

RELATED: Caltrans reimbursing up to $10,000 for damage caused by freeway potholes

State Farm agents licensed in California will continue to serve existing customers for these products. They will also serve new customers for products not impacted by this decision.

For more information on finding if your ZIP Code was included under any mandatory moratorium visit


Latest articles

Smoke advisory due to Vista fire in effect until July 10

SAN BERNARDINO COUNTY – The Mojave Desert Air Quality Management District (MDAQMD) is advising...

CA private industry lost 154,000 jobs while the public sector gained ​​361,000 jobs

CALIFORNIA – The California Legislative Analyst Office (LAO) published a report, July 1, with...

Victorville offering free kitchen food scrap containers for residents

VICTORVILLE – The City of Victorville, on July 8, announced that they would be...

Proposition 32 will allow voters to decide on $18 minimum wage for all California workers

CALIFORNIA – California voters will get to decide, November 5, on Proposition 32, a...
Powered by

More like this

Board of Supervisors requesting CA to declare a state of emergency for insurance crisis

SAN BERNARDINO COUNTY – The San Bernardino County Board of Supervisors passed a resolution,...

CalHFA issues all 1,700 vouchers for down payment assistance program

CALIFORNIA – Governor Gavin Newsom announced, June 28, that 1,700 first-generation homebuyers have been...

Law limiting security deposits goes into effect July 1

CALIFORNIA – Starting July 1, landlords will only be allowed to collect one month’s...