44 State Farm’s March announcement to terminate insurance coverage for about 30,000 homes and 42,000 apartments surprised many. Citing increased costs, growing disaster risks like wildfires, and outdated regulations, the company explained its decision. Policy expirations will happen gradually until 2025, starting with homeowner, rental dwelling, and business owner policies in July, followed by commercial apartment policies in August. State Farm’s decision reflects financial concerns including inflation and reinsurance costs. This move follows a previous halt in issuing new policies in California, signaling profitability challenges. The termination leaves homeowners and apartment owners scrambling for alternatives. In California, some may turn to the Fair Access to Insurance Requirements (FAIR) plan, though it offers pricier and less comprehensive coverage. This trend reflects the broader challenges posed by natural disasters, with FAIR plan policy counts doubling over the last five years. You Might Be Interested In TIM CEO Foresees Nearly €5 Billion Benefits from New Business Plan Oil Prices Surge on Escalating Geopolitical Tensions Labour’s Plan to Support Female-Led Businesses and Address Financial Exclusion Uber Makes the Cut Citi: Inflation and market volatility top concerns of mid-sized corporates Citigroup Initiates Major Overhaul, Eliminating Over 300 Senior Management Roles