Still, the coverage that they will be receiving won’t be the same as what they’re used to
State Farm has announced that it will be making it possible for some California home insurance customers to renew their policies, after having previously announced that it would no longer be selling or renewing property coverage in the state.
That said, there is an important change to the coverage it will be providing
While this does mean that homeowners will be able to keep their home insurance coverage, they should be aware that this will no longer provide them with fire damage protection.
State Farm first announced that it was opting not to renew over 30,000 policies in California back in March. This was the latest in a growing trend among insurers that were withdrawing from the state, choosing not to sell any new policies, or ceasing the renewals of existing policies. Almost every major property insurer has altered the way they sell in the state, if they haven’t entirely made their withdrawal.
State Farm will now renew some home insurance policies without fire coverage
While this means that homeowners will essentially have standard coverage in place, it will still be lacking in a major area affecting the state. Wildfires have become increasingly common and severe in the state and have been cited as one of the main reasons that insurers have chosen not to do business in the state.
Therefore, while State Farm customers will still be covered against many things, they will need to find their fire insurance protection elsewhere, such as through the California FAIR plan. They can purchase that coverage directly through the plan or if they have an agent, they can purchase it through that professional who is already supporting the customer with their property coverage.
The largest insurer in the state
As State Farm is the largest home insurer in the state, even the altered version of coverage has opened up new opportunities for property owners to find coverage.
Though this certainly isn’t enough to correct the crisis the state is facing in this particular market, it is considered to be a step in the right direction, particularly for those who would have lost their coverage and had yet to find a policy to replace it.
