California Insurance Department Responds to State Farm’s New Business Hold

In response to the announcement by State Farm that the company would stop writing new homeowners and certain commercial property policies in the state due to the increased risk and cost of wildfires, the department issued a Consumer Alert with advice to consumers on obtaining coverage.

The alert advises that there are several factors affecting the industry as a whole that affected State Farm’s decision. Customers will not be nonrenewed as part of State Farm’s announcement, the company is just not adding new policies to its book of business. The alert advises that there are roughly 115 other insurers in the state still writing policies so that coverage is readily available to customers, as well as the FAIR plan for those properties that do not qualify for any other available insurer.