State Farm to Renew Policies for Thousands of California Homeowners

State Farm will reinstate thousands of homeowners’ policies it canceled last year in fire-prone areas across California. The renewals will impact 22 counties, including 1,100 policies in Pacific Palisades, but will exclude policies that lapsed before the January 7 wildfires.

State Farm spokesperson Bob Devereux stated that policyholders in fire zones would receive one-year renewals, with total-loss claimants eligible for two renewals under state law. In 2022, the company canceled 72,000 policies, including 7,600 in Pacific Palisades and 525 near the Eaton fire.

CEO Jon Farney explained the cancellations were due to high financial risks from catastrophic claims. The Los Angeles wildfires, which claimed 24 lives and destroyed 12,000 structures, resulted in 6,300 claims, marking State Farm’s largest wildfire response.

Insurance Commissioner Ricardo Lara extended a moratorium to prevent further cancellations, emphasizing swift, fair claims processing.