State Farm announces major insurance policy change affecting tens of thousands of households: 'This decision was not made lightly'

State Farm, California's largest insurance provider, announced it would not renew insurance policies for approximately 72,000 homes and apartments in the state beginning this summer.

In March, State Farm stated that it would discontinue coverage for around 30,000 homes and 42,000 apartments, citing surging costs, increasing risks of disasters such as wildfires, and outdated insurance rules as reasons for terminating the policies, per the Associated Press.

The insurance company said the policy expirations would "occur on a rolling basis" through 2025, starting July 3 for homeowner, rental dwelling, and business owner policies and Aug. 20 for commercial apartment policies.

"This 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," the company said in a statement.

"State Farm General takes seriously our responsibility to maintain adequate claims-paying capacity for our customers and to comply with applicable financial solvency laws. It is necessary to take these actions now."

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