State Farm cutting coverage: Here's a list of the SoCal communities impacted by zip code (2024)

LOS ANGELES (KABC) -- In a state with a very high risk of wildfires, many California homeowners have insurance policies to cover fire damage, but thousands who have State Farm will soon be dropped.

A total of 72,000 State Farm policies will be canceled in the state, 30,000 of which are homes. Some people in upscale neighborhoods in Los Angeles County, especially those in high-risk fire areas, are being impacted.

"What we were told is that they have too high a concentration in California and they need to reduce their risk, and it's a $2.5 billion reinsurance problem for them, so it's about money," said Brentwood Homeowners Association President Thelma Waxman.

This all comes after record-breaking wildfire seasons in 2017 and 2018. Those fires caused huge losses for the insurance industry across the state. Because of that, major insurers, like Allstate, have stopped accepting new applications.

In a March letter to Insurance Commissioner Ricardo Lara, State Farm President and CEO Denise Hardin said in part, "As shared with the Department prior to the February 2023 filing, rate increases alone would likely be insufficient to restore SFG's financial strength. 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. 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."

What's the impact in Los Angeles County?

According to State Farm, roughly 1,600 insured homes will lose coverage in Pacific Palisades. In Brentwood, the number is slightly lower at 1,300. Woodland Hills will see just under 2,000 homes dropped and in Bel Air, about 660 homes.

"If State Farm is having trouble making money and has too high a concentration, then Farmer's Insurance, which is here, and Chubb and the other ones, when do they decide it's too much risk to bear? And we know they have raised rates, but at some point, State Farm, they can't raise rates high enough."

Retired California Assemblyman Mike Gatto said the state has a fallback option called the state fund.

"But the reality is it provides very bare bones coverage at a very high cost, so there aren't too many great options for people who lose their home insurance, which is why this will become an outright crisis in the months ahead," he said.

Why are insurance companies canceling policies and why are some deciding to leave California?

It's not just because of high-risk weather events like wildfires but it also has to do with inflation, regulation, and the cost of reinsurance.

"What we've done is we've started to educate our homeowners on how to protect their houses from wildfire to maintain the policies they have," said Waxman. "We've had members tell us their insurance companies have told them they won't renew the policies unless they create defensible space and they send them aerial photos showing them their house."

Where is State Farm dropping coverage? List of SoCal zip codes and non-renewed policies

Los Angeles County

90024: Westwood - 30

90027: Griffith Park, Los Feliz area - 7

90046 and 90068: Hollywood Hills area - 64 and 15

90049: Brentwood - 1,301

90069: West Hollywood, Beverly Crest - 29

90210: Beverly Hills, Beverly Crest - 698

Ventura County

91360: Thousand Oaks, Mountclef Village, Greenwich Village area - 24

91320: Newbury Park - 46

91361: Westlake Village - 310

91362: Thousand Oaks, North Ranch, Westlake Village - 409

91377: Oak Park - 7

San Bernardino County

91759: Mt Baldy - 10

91709: Chino Hills - 8

92315: Big Bear Lake area - 1

92317: 2

92322: Cedarpines Park area - 7

92325: Crestline - 34

92346: Highland - 1

92352: Lake Arrowhead area - 262

92372: Pinon Hills - 22

92382: Running Springs - 22

92385: Skyforest - 8

92391: Twin Peaks - 11

92399: Yucaipa - 13

92404: San Bernardino, Arrowhead Springs area - 4

Orange County

90631: La Habra, La Habra Heights - 2

92602: Irvine, Orchard Hills area - 1

92603: Irvine, Shady Canyon area - 23

92607: Laguna Niguel area - 1

92625: Corona Del Mar - 2

92651: Laguna Beach - 8

92657: Newport Coast, San Joaquin Hills - 101

92672: San Clemente - 2

92676: Silverado - 2

92677: Laguna Niguel - 1

92679: Trabuco Canyon - 88

92694: Ladera Ranch - 1

State Farm cutting coverage: Here's a list of the SoCal communities impacted by zip code (2024)

FAQs

What zip code in California is State Farm dropping? ›

California ZIP codes where State Farm policies will be non-renewed

ZIP code	County	Share*
94563	Contra Costa	55%
90272	Los Angeles	69%
90049	Los Angeles	62%
91302	Los Angeles	60%

11 more rows

Apr 11, 2024

Read On ›

Where in California is State Farm dropping homeowners insurance? ›

Zip code 94563 in the Bay Area (Orinda) tops the list, where more than 50% of policyholders are expected to be impacted. Zip code 90272 (Pacific Palisades within Los Angeles city limits) ranks second, with 1,626 non-renewed policies (69.4%).

Discover More Details ›

Is State Farm canceling 30000 homeowners policies in California? ›

State Farm won't renew 72,000 California home insurance policies this year. State Farm plans to cancel tens of thousands of homeowners' insurance policies in California this year. The cancellation plan will affect 30,000 homes and 42,000 apartments and starts to take effect in early July.

Why did state farm insurance leave California? ›

The insurer blames the rising risk of natural disasters like wildfires in California and the state's outdated regulations.

See Details ›

Is State Farm losing money in California? ›

Last year, State Farm reported a loss ratio of 89.61% in California — meaning it paid $89.61 in claims for every $100 it took in in premiums. It was the company's worst performing year since the devastating wildfires of 2017.

Find Out More ›

What insurance companies are cancelling policies in California 2024? ›

From summer 2023 to early 2024, five other companies — AmGUARD, Falls Lake, The Hartford, Tokio Marine Insurance Co, and American National — stopped writing new home insurance policies in California, putting immense strain on the home insurance market. California homeowners have found themselves scrambling for coverage ...

Tell Me More ›

Is State Farm writing homeowners insurance in California? ›

Last month, State Farm issued a written statement explaining its decision to no longer write new policies for new California homes and to end coverage for about 50,000 existing California customers.

Show Me More ›

What areas of California are uninsurable? ›

ZIP codes with the most non-renewed policies are in parts of Contra Costa, Los Angeles, Santa Clara, Santa Cruz, Sonoma, San Diego and Nevada counties.

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Why is State Farm dropping customers? ›

In a statement, the big insurance carrier says: "The decision was not made lightly and only after careful analysis of State Farm General's financial health, which continues to be impacted by inflation, catastrophe exposure, reinsurance costs and the limitations of working within decades-old-insurance regulations."

Who is California's largest home insurer? ›

State Farm, California's largest property and casualty insurer with an 8.7% market share, hasn't offered new home policies since May 2023.

Show Me More ›

Is Allstate and State Farm pulling out of California? ›

Allstate stopped issuing new insurance policies for all business and personal property in California back in 2022. Since then, companies like State Farm, Farmers Insurance and The Hartford have made similar business moves.

Read The Full Story ›

What happens if State Farm leaves California? ›

State Farm is reducing its presence in California's insurance market, but this primarily affects business and personal lines, such as property and casualty insurance, not auto insurance directly. You don't have to worry because State Farm leaving California will not affect your auto insurance policy.

See Details ›

What zip code is State Farm cancelling in California? ›

In one zip code, 95033, in the Santa Cruz mountains, more than 65% of policies will be ending. And in 95409 near Santa Rosa, nearly 48 percent. But in the entire state, the area with the most policies being non-renewed is the small Contra Costa County city of Orinda.

Get More Info Here ›

Is State Farm pulling out of California today? ›

When will the change take effect? Starting in July 2024, State Farm will stop insuring more than 30,000 residential homes in California, and starting in August, will discontinue coverage on 42,000 commercial apartment properties.

Why does State Farm deny so many claims? ›

If there is a lack of evidence, or the evidence does not seem credible, State Farm may deny your insurance claim. For instance, if you claim automobile damages but do not have photographic proof, or estimates for the repair from a reputable repair company, State Farm may be suspicious of the claim and deny it.

Where is State Farm not renewing policies in California? ›

But in the entire state, the area with the most policies being non-renewed is the small Contra Costa County city of Orinda.

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Is State Farm writing new policies in California? ›