State Farm announced on Wednesday (January 15) that it will offer policy renewals to homeowners impacted by the recent wildfires in Los Angeles County. This decision comes after the company had previously planned to drop coverage for many residents. State Farm, one of California’s largest insurers, has already received over 7,400 home and auto insurance claims related to the fires, and this number is expected to increase as residents return to assess the damage.
The policy change will affect thousands of homeowners, including about 1,100 policies in the Pacific Palisades area, and many more across Los Angeles County. Policies that had lapsed before the fires started on January 7 will not be eligible for renewal. State Farm’s decision follows a call from State Insurance Commissioner Ricardo Lara to suspend nonrenewals in affected areas. The wildfires have resulted in at least 24 fatalities and destroyed 12,000 structures.
State Farm’s CEO, Jon Farney, explained that the company initially decided to cancel policies due to the high risk of being overwhelmed by claims from such catastrophic events. However, the insurer has now paused non-renewal notifications for affected areas and will offer one-year renewal options to policyholders in fire zones. Those with total losses will receive two renewals, as mandated by law. State Farm has also committed $2 million to support relief efforts in the most impacted areas, including contributions to organizations like the American Red Cross and the Los Angeles Fire Department Foundation.
State Farm’s official statement emphasizes their commitment to helping customers recover from the largest fire event they have ever experienced in California. The company has deployed its Catastrophe Response Team to assist residents and has set up Catastrophe Customer Care sites for claim assistance.
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