SAN DIEGO – State Farm, California’s largest homeowners insurance provider, has indicated where it will not renew policies, and hundreds and hundreds of San Diego residents will be affected, according to a document provided by the California Department of Insurance.
State Farm will discontinue coverage for 72,000 homes and apartments in California starting this summer, the insurance giant said this week, nine months after announcing it would not issue new home policies in the state.
The hardest-hit community in the state is in Orinda, just east of Berkeley in the Bay Area, where State Farm will not renew 1,703 policies in the 94563 zip code, representing 55% of the state’s homeowners policies. the city. That’s the highest number of non-renewals for a ZIP code in the state. The next highest is in Los Angeles.
In San Diego, the community with the most policies not being renewed is Rancho Santa Fe, where 600 policies will not be renewed, more than half written for the posh community. A wide swath of communities in San Diego, not necessarily contiguous, are affected by State Farm’s decision. The table below breaks down the most affected zip codes, but does not cover all affected properties.
LocationPostal CodePolicies that will not be renewedTotal policiesPercentageRancho Santa Fe92067643126051%El Cajon919357845217.3%Tierrasanta9212412997513.2Lakeside92040164151810.8%East County near Crest9202113515728.8%Uni. Hts., Normal Hts., Kensington92116708997.8Scripps Ranch9213111018755.9%Poway920649718105.4
Homeowners can only hope that the governor, insurance commissioner and state legislators take action because affected residents will surely have a hard time finding affordable insurance elsewhere.
“This decision was not made lightly, and only after careful analysis of State Farm’s financial health, which continues to be affected by inflation, catastrophe exposure, reinsurance costs and the limitations of working within regulatory regulations. insurance policies that are decades old,” the statement reads.
Here we show you a complete list of affected zip codes.
The measure affects thousands of Californians. The highest number of nonrenewals for a ZIP code in the state is 1,703 policies in Orinda’s 94563 ZIP code. That’s 55 percent of Bay Area city homeowners policies.
Last month, State Farm issued a written statement explaining its decision to no longer issue new policies for new homes in California and to end coverage for some 50,000 existing customers in California.
“This decision was not made lightly, and only after careful analysis of State Farm’s financial health, which continues to be affected by inflation, catastrophe exposure, reinsurance costs and the limitations of working within regulatory regulations. insurance policies that are decades old,” the statement reads.
Homeowners who live in areas with high risk of disasters like wildfires will have to participate in California’s state-subsidized FAIR plan. It is expensive and only offers fire coverage.
Last month, a nonprofit research group said insurers have been losing money because of California’s premium caps and that for every dollar insurance companies receive in premiums in the state, $1 is spent, 08 in the payment of claims, mainly due to forest fires.
The Insurance Information Institute says the California Department of Insurance is updating regulations that could bring more competitively priced policy options to the state.
“To allow insurers to better manage risk, that would mean being able to charge what are commonly known as actuarially sound rates, something that doesn’t happen today,” said Mark Friedlander of the Insurance Information Institute.
Friedlander says it could take a few years for California’s homeowners insurance industry to stabilize even after the new laws are enacted.
2024-04-10 23:37:41
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