State Farm renewing thousands of policies for LA homeowners – Washington Examiner
State Farm is set to renew thousands of homeowners’ insurance policies in Louisiana. This decision reflects the company’s ongoing commitment to providing coverage in the region, particularly considering ongoing market conditions. The proclamation highlights the importance of insurance for homeowners, especially in areas prone to natural disasters. Further details can be found in the full article on the Washington Examiner’s website.
State Farm renewing thousands of policies for LA homeowners
State Farm will renew thousands of policies for Los Angeles homeowners it previously canceled in March last year.
The policy change will affect residents in 22 counties across the state, including 1,100 policies within the zip code of 90272, the heart of the Pacific Palisades fire. Policies that would have lapsed before the fires started on Jan. 7 will not be included in the renewal.
The Washington Examiner reached out to State Farm to determine the total number of policyholders the policy change will affect.
State Farm spokesman Bob Devereux told the Los Angeles Times that policyholders in the fire zones would be granted one-year renewal offers, and those with total losses would be granted two renewals, as mandated by law.
Last year, the insurance company canceled 72,000 policies for homeowners, rental and residential community association owners, and commercial building owners. There were 7,600 denied policy renewals located in Pacific Palisades. State Farm canceled 525 insurance policies in the area of the San Gabriel Valley’s Eaton fire.
Jon Farney, chief executive of State Farm Mutual Automobile Insurance, parent of State Farm General, its California subsidiary, told the outlet that the company made the difficult decision because it could not afford to take on the risk calculated from the possibility of being overwhelmed by claims in a catastrophe such as the one unfolding in Los Angeles.
The Los Angeles wildfires have killed at least 24 people and burned down 12,000 structures across the Los Angeles area.
Farney said State Farm has already received 6,300 residential and auto claims, making it the largest wildfire disaster the company has ever handled.
Last week, State Insurance Commissioner Ricardo Lara called on insurance companies to suspend pending nonrenewals in zip codes located within the Palisades and Eaton fire zones. He also expanded the boundaries of a moratorium, which barred insurers from issuing new cancellation or nonrenewal notices for one year — regardless of whether homeowners have suffered a loss.
“All eyes are on insurance companies right now, including mine. We are going to keep working to make sure everyone’s claims are paid fairly, quickly, and completely,” Lara said in a statement Wednesday.
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