Tag: California homeowners

State Farm’s Financial Challenges Leave California Homeowners in Limbo

Ester Adams
State Farm Financial Challenges

State Farm, the largest property insurance provider in California, is dealing with financial instability after a series of devastating wildfires. This turmoil has placed homeowners across the state in a precarious position, as discussions between the insurer and state regulators continue with no resolution yet in sight. Wildfire Losses Plunge State Farm Into Financial Uncertainty The Los Angeles fires, which ravaged neighborhoods earlier this year, have dealt a heavy financial blow to insurers, with State Farm bearing the brunt of the damage. The company’s homeowner claims have surged to a…

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California Rejects State Farm’s Emergency 22% Home Insurance Rate Hike Request

Angela Linders
California Rejects State Farm's Emergency 22% Home Insurance Rate Hike Request

California Insurance Commissioner Rejects Rate Hike Amid Consumer Concern California Insurance Commissioner Ricardo Lara has rejected a proposed 22% emergency rate hike for home insurance requested by State Farm General Insurance Company. The decision came after the company failed to provide evidence proving the increase was necessary and could not explain how the additional revenue would address its prior decisions to stop writing new policies in the state and not renew existing ones. Lara’s letter to State Farm underscored his commitment to protecting policyholders from unnecessary financial burdens while voicing…

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California’s Home Insurance Crisis Amid Rising Claims Denials

Logan B.
Home Insurance Crisis and Claims Denial

Growing Denials Leave Homeowners Vulnerable California’s homeowners faced significant challenges in 2023 as leading insurance companies denied nearly half of all claims, far exceeding the national average. A report by Weiss Ratings revealed that some of the state’s top insurers, including Farmers (50%), USAA (48%), and Allstate (46%), topped the list for denied claims. This comes as insurers deal with increasing exposures to climate-related disasters like wildfires, hurricanes, and flooding. While some insurers show alarming claim denial numbers, others demonstrate relatively better performance. Among these are two affiliates of AAA,…

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Liberty Mutual Lawsuit Raises Alarming Questions for California Homeowners

Live Insurance News
Liberty Mutual Lawsuit

Southern California Homeowner Challenges Liberty Mutual Over Policy Cancellation A Poway homeowner, Maria Badin, has filed a lawsuit against Liberty Mutual Insurance Co., alleging unjust cancellation of her long-standing home insurance policy. This legal battle may have significant implications not only for Badin but also for many other Californians facing similar situations. Allegations of Misconduct by Insurance Companies Maria Badin, a Liberty Mutual customer since 1993, claims her policy was abruptly nonrenewed after an aerial inspection reportedly identified “algae, mildew, mold, or moss” on her roof. However, upon hiring an…

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State Farm Reverses California Policy Non-Renewals – With a Catch

Live Insurance News
Allstate home insurance growth and decline

State Farm, the largest insurance carrier in California, has announced a significant reversal of its earlier decision to not renew over 70,000 policies in the state, including 30,000 home insurance policies. This change comes after the company initially cited increasing wildfire risks as the primary reason for its decision back in March. However, the company’s renewed commitment comes with a notable caveat that is bound to impact policyholders significantly. State Farm Reversal and The Catch According to a statement from Sevag Sarkissian, State Farm’s California spokesperson, while the company will…

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Californians wonder if fire hardening will make it easier to get homeowners’ insurance

H. Cutner
Fire hardening - Wildfires

Creating a program to incentivize homeowners to mitigate the risk of wildfires has potential. Californians across the state are trying to do what they can to spare their homes from wildfire risk, and some are looking to fire hardening in the hopes of becoming more acceptable to homeowners’ insurance companies. Insurers are becoming increasingly risk averse in the state when it comes to protecting from wildfire. Californian homeowners have been watching their premiums spiking and many are at a risk of having their coverage cancelled altogether. The wildfires in the…

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