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Saturday, March 15, 2025

State Farm is withdrawing 72,000 policies in California starting next year

State Farm is planning to drop 72,000 more policies in California.

The insurance company announced in a press release on March 20 that it is planning the non-renewal of approximately 30,000 homeowners, rental dwelling, and property insurances, and 42,000 commercial apartment policies in California.

State Farm plans to non-renew 72,000 policies in California starting next year. [Image captured from State Farm]

A commercial apartment policy is insurance for an apartment owner.

Policies that are subject to the company’s withdrawal represent about 2% of its total state policies, according to State Farm.

The change is aimed at ensuring “long-term sustainability” in the market, which continues to be impacted by inflation, catastrophe exposure, reinsurance costs, and the limitations of working within decades-old insurance regulations.

Those affected will receive notifications starting from July 3 for homeowners, rental dwelling, residential community association, and business owners’ policies, and August 20 for commercial apartment policies.

These changes are slated to take effect at the year’s end.

BY HOONSIK WOO    [woo.hoonsik@koreadaily.com]

The Korea Daily
The Korea Daily
Founded in 1974, The Korea Daily (미주중앙일보) is the largest Korean media outlet in the U.S., providing in-depth coverage of local, national, and international news with a strong focus on immigration, business, and the Korean-American community. While covering major cities across the U.S., including New York, Washington D.C., Atlanta, Chicago, San Diego, San Francisco, Denver, and Dallas, as well as Vancouver and Toronto, Canada, The Korea Daily primarily focuses on news in Los Angeles County and Orange County. Headquartered in Koreatown, Los Angeles, it serves as a key news source for Korean Americans in Southern California.