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.
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]
