this post was submitted on 22 Mar 2024
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State Farm will discontinue coverage for 72,000 houses and apartments in California starting this summer, the insurance giant said this week, nine months after announcing it would not issue new home policies in the state 

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company, California’s largest insurer, cited soaring costs, the increasing risk of catastrophes like wildfires and outdated regulations as reasons it won’t renew the policies on 30,000 houses and 42,000 apartments, the Bay Area News Group reported Thursday.

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[–] [email protected] 33 points 8 months ago (4 children)

What climate catastrophe-free area of the country does State Farm think it will make sense to still insure homes in?

Also, I thought they were like a good neighbor.

[–] [email protected] 22 points 8 months ago (1 children)

Like a good neighbor, State Farm is there” means that they resemble a good neighbor only insofar as both share the attribute of existence.

[–] [email protected] 19 points 8 months ago

At least Geico is relatively honest. "Yes, we are a bunch of reptiles."

[–] [email protected] 10 points 8 months ago (1 children)

Non-coastal new England is pretty safe. No earthquakes, few hurricane effects, almost no tornadoes, tends to stay damp enough and has enough old deciduous growth, where forest fires aren't a big issue.

I am sure there are other places that are low risk as well.

[–] [email protected] 1 points 8 months ago (1 children)

And if the entire population of the country moves there due to insurance pulling out of everywhere else, non coastal new england will turn into San Francisco.

This isn’t the answer you think it is.

[–] [email protected] 2 points 8 months ago

I was just answering the simple question, not providing a solution to a problem.

[–] [email protected] 5 points 8 months ago (1 children)

Where does the CEO live again?

[–] [email protected] 3 points 8 months ago (1 children)

Chicago area, apparently. Not exactly free from climate catastrophes.

[–] [email protected] 3 points 8 months ago

No place is 100% safe. Around the great lakes is probably one of the best places to be going forward though.

[–] [email protected] 3 points 8 months ago

Part of the problem is that many of the states where insurance companies are leaving have rules that limit what they can charge. That sounds good in principle, but with climate change causing these disasters to happen more often the insurance companies are bleeding money. Ultimately insurance as an industry can't work if you keep having losses, and if you can't increase prices to cope then you have no choice but to withdraw.

I've sure State Farm is happy to cover catastrophe-prone areas, but only if they won't lose money on average.