State Farm Will Exit Commercial Apartment Insurance in CA

State Farm, California’s largest home insurance carrier, said it would exit the commercial apartment policy business in California. The nonrenewal notices affect 42,000 landlords statewide. The insurer will also send nonrenewal notices on approximately 30,000 homeowners, rental dwelling and other property insurance policies (residential community association and business owners).

“These actions are California-specific and will occur on a rolling basis over the next year, beginning on July 3, 2024, for homeowners, rental dwelling, residential community association and business owners policies and on August 20, 2024, for commercial apartment policies,” the company said in a statement. Combined, these policies represent just over 2% of State Farm policy count in California.

The nonrenewal action comes about a year after State Farm announced it would no longer accept new homeowner insurance applications in California. “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,” according to the statement.

Industry leaders and power players are connecting at Connect Phoenix Multifamily & Single-Family Build-to-Rent on April 18 at the Westin Kierland Resort & Spa. Don’t miss the expert’s take on where the market is headed, and what changes are on the horizon. Register Now!