State Farm Insurance Abandons Homeowners in Doomed California

Ralf Liebhold /
Ralf Liebhold /

California’s mismanagement of public lands, the electrical grid, and the state’s water supplies have now left homeowners with no options to insure their property. State Farm has announced it will not be renewing homeowners insurance policies for many thousands of people at the end of April. For many property owners, State Farm was the lone holdout that they could still get a policy from in wildfire-prone parts of the state.

In May 2023, State Farm announced that it would not be offering any new homeowner insurance policies in California. The company just announced that 72,000 existing policies will not be rolled over once they expire.

Most insurance companies had already bailed on many parts of the state because of the corrupt, Democrat-controlled government’s inability to curb wildfire dangers. They declared the wildfire-prone areas to be uninsurable.

This will only accelerate the exodus out of California for people who were wealthy enough to own their homes. The insurance companies are calculating that homes in wooded areas are so likely to be destroyed by wildfires that they’ll no longer insure them. What property owner would risk staying in the state at this point?

One of the hardest hit communities in California will be Orinda, a suburb of Oakland. State Farm is canceling 1,703 policies there, which accounts for 54.7% of all homes in the community. In Pacific Palisades in Los Angeles, nearly 70% of homeowners policies are being canceled (1,626 homes). Other highly impacted areas are communities in the hills around San Diego and in Santa Marta to the north of the Bay Area.

Just to reiterate: Governor Gavin Newsom (D), who wants to be president, and the Democrat supermajority in the legislature have made life so unlivable in California that tens of thousands of homeowners can no longer get a homeowners insurance policy.