What is the Future of Your State Farm Homeowners Policy?

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In March, State Farm General Insurance Company announced it will discontinue coverage for 72,000 houses and apartments in California starting this summer. CBS News reports the announcement comes nine months after State Farm announced it would discontinue issuing new home policies in the state.

California’s largest insurer, Illinois-based State Farm cited soaring costs, the increasing risk of catastrophes like wildfires and outdated regulations as reasons it won’t renew the policies on 30,000 houses and 42,000 apartments, according to the Bay Area News Group.

The company said the newly announced cancellations account for just over 2% of its California policies. In March, it did not say where they’re located or what criteria it used to determine that they wouldn’t be renewed.

However, State Farm officials have released information about affected California zip codes.

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%).

Zip code 90049 in Los Angeles (Brentwood) placed third, with 1,301 non-renewed policies (61.5%), and zip code 91302 (Calabasas) followed with 1,090 non-renewed policies. (60.4%).

The insurance giant said the non-renewals will occur on a rolling basis once existing policies expire, and affected policyholders will be notified of State Farm’s decision “in advance of their policy expiration to provide information on other coverage options.” The cancellations amount to about 2% of State Farm’s entire policy base in California.