Tens of thousands of State Farm homeowner and rental dwelling policies will be dropped this summer in California, and the San Francisco Chronicle obtained information from the California Department of Insurance showing the areas that will be most impacted. ZIP codes with the most non-renewed policies are in parts of Contra Costa, Los Angeles, Santa Clara, Santa Cruz, Sonoma, San Diego and Nevada counties.|MORE | See the SF Chronicle's detailed information by ZIP codes where the insurer will drop policies Search a map below that shows areas where policies won't be renewed. State Farm put out a list of tens of thousands of policies that won’t be renewed. Some of that is in Nevada County. “This is a crisis in this state and our county and it’s much bigger than State Farm,” Nevada County Supervisor Heidi Hall told KCRA 3. “There are some actions that need to be taken immediately to help our rural communities with this issue.” In Nevada County, more than 30% of policies for ZIP code 95949, which includes Alta Sierra, won’t be included. That affects 636 properties. ZIP code 95959, which includes Grass Valley, has 35% of policies impacted and involves 444 properties. ZIP code 95945, which includes Nevada City, has 25.7% of property policies impacted, 566 properties. “The community is angry, frustrated, concerned, anxious,” Hall said noting that residents have put thousands of dollars into hardening their homes to prevent wildfire impacts. “We absolutely need the insurance companies to recognize the work that we’re already doing, but in the meantime, we just need to keep looking for someone to insure us.” State Farm said in March that it would not renew about 30,000 property insurance policies for homeowners and business owners. It also plans to withdraw from renewing approximately 42,000 commercial apartment policies. These non-renewals are California-specific and will happen over the next year on a rolling basis. This decision comes after State Farm announced in May 2023 that it would no longer be accepting new applications for home and business owners.The cycle of property insurance policy non-renewals will begin on July 3 and the commercial apartment policy non-renewals will begin on Aug. 20. State Farm said these represent more than 2% of the company's policy count in the state. | PREVIOUS COVERAGE | California insurance commissioner says he can't take action against State FarmThe insurance company said in a release that these decisions were made to ensure its "long-term sustainability in California," citing financial shortcomings. "This decision was not made lightly and only after careful analysis of State Farm General’s financial health, which continues to be impacted by inflation, catastrophe exposure, reinsurance costs, and the limitations of working within decades-old insurance regulations," State Farm said. Customers impacted by State Farm's non-renewal plan will be notified ahead of their policy's expiration date. State Farm isn't the only company that has withdrawn business in California. KCRA 3 reported in February that seven of the 12 largest insurance groups in the state had either paused or restricted new homeowner policies.| RELATED | 'I feel helpless': Homeowners struggle to find, afford insurance amid California's crisis
Tens of thousands of State Farm homeowner and rental dwelling policies will be dropped this summer in California, and the San Francisco Chronicle obtained information from the California Department of Insurance showing the areas that will be most impacted.
ZIP codes with the most non-renewed policies are in parts of Contra Costa, Los Angeles, Santa Clara, Santa Cruz, Sonoma, San Diego and Nevada counties.
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|MORE | See the SF Chronicle's detailed information by ZIP codes where the insurer will drop policies
Search a map below that shows areas where policies won't be renewed.
State Farm put out a list of tens of thousands of policies that won’t be renewed. Some of that is in Nevada County.
“This is a crisis in this state and our county and it’s much bigger than State Farm,” Nevada County Supervisor Heidi Hall told KCRA 3. “There are some actions that need to be taken immediately to help our rural communities with this issue.”
In Nevada County, more than 30% of policies for ZIP code 95949, which includes Alta Sierra, won’t be included. That affects 636 properties.
ZIP code 95959, which includes Grass Valley, has 35% of policies impacted and involves 444 properties.
ZIP code 95945, which includes Nevada City, has 25.7% of property policies impacted, 566 properties.
“The community is angry, frustrated, concerned, anxious,” Hall said noting that residents have put thousands of dollars into hardening their homes to prevent wildfire impacts. “We absolutely need the insurance companies to recognize the work that we’re already doing, but in the meantime, we just need to keep looking for someone to insure us.”
State Farm said in March that it would not renew about 30,000 property insurance policies for homeowners and business owners. It also plans to withdraw from renewing approximately 42,000 commercial apartment policies. These non-renewals are California-specific and will happen over the next year on a rolling basis.
This decision comes after State Farm announced in May 2023 that it would no longer be accepting new applications for home and business owners.
The cycle of property insurance policy non-renewals will begin on July 3 and the commercial apartment policy non-renewals will begin on Aug. 20. State Farm said these represent more than 2% of the company's policy count in the state.
| PREVIOUS COVERAGE | California insurance commissioner says he can't take action against State Farm
The insurance company said in a release that these decisions were made to ensure its "long-term sustainability in California," citing financial shortcomings.
"This decision was not made lightly and only after careful analysis of State Farm General’s financial health, which continues to be impacted by inflation, catastrophe exposure, reinsurance costs, and the limitations of working within decades-old insurance regulations," State Farm said.
Customers impacted by State Farm's non-renewal plan will be notified ahead of their policy's expiration date.
State Farm isn't the only company that has withdrawn business in California. KCRA 3 reported in February that seven of the 12 largest insurance groups in the state had either paused or restricted new homeowner policies.
California Department of Insurance
| RELATED | 'I feel helpless': Homeowners struggle to find, afford insurance amid California's crisis
