Like a good neighbor, State Farm actually won't be there for new homes and businesses in California. Starting Saturday, it will not insure them due to high wildfire risk and increased construction costs. Existing State Farm customers won't be affected.
State Farm says it will no longer insure new homes and properties in California due to wildfires and rebuilding costs.A big announcement this holiday weekend from of the country's biggest insurance companies. State Farm says effective Saturday, it will no longer insure new homes or businesses in California due to high"The fact they want to pick and choose who they cover, it doesn't seem the way it should be," said Lisa Frazee.
Lisa Frazee knows the slogan, "Like a good neighbor, State Farm is there," but she wonders how true that is, after the company announced it will no longer insure new homes and properties in California due to wildfire risk and rebuilding costs. Existing State Farm customers, like Lisa will not be affected. She and her family have spent the last years rebuilding the Santa Rosa home they lost in the 2017 Tubbs Fire. The house is now complete. But Lisa worries about others moving to the area, looking to insure their homes or businesses.
California has experienced record wildfires in the past six years. State Farm is the second insurance company to stop offering coverage due to wildfires. Last year, AIG notified thousands of Californians their policies would not be renewed. With State Farm no longer accepting new customers, the real question is where people can go for insurance in high fire risk areas.
"It's a basic policy, only covers fire - you have to get a wraparound policy too to cover theft and liability," said Ruiz.As for Lisa, she's happy to have insurance for her new fire-resistant home.
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