Hundreds of thousands of people across California, including thousands in San Diego, have lost or will be losing their home insurance as insurance companies pull policies or fail to renew them.
In April, State Farm announced it would not be renewing 72,000 home insurance polices in the state, including many in San Diego. Residents in impacted areas like Encinitas, Rancho Santa Fe, El Cajon, Vista, Normal Heights, Lakeside, Jamul, Ramona and Carmel Valley are expected to lose their coverage starting July 1.
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County Supervisor Terra Lawson-Remer will bring a resolution during this week's Board of Supervisors meeting,
opposing State Farm and other insurance companies for pulling policies from homeowners, renters and small
businesses as the state works to modernize regulations.
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“Greedy insurance companies like State Farm are using homeowners, renters and business owners as a pawn in their negotiations with the state on new insurance regulations," Lawson-Remer said at Monday's news conference. "They are severing ties with homeowners and renters in San Diego County, which is not very neighborly of State Farm or any other insurance provider.”
Increased wildfires, rising construction costs and inflation are the main reasons insurance companies say it’s cost prohibitive to continue writing policies in California. The state is currently negotiating with insurance companies to stabilize rates and modernized regulations to create a viable insurance business model.
Gov. Gavin Newsom is pushing to stabilize the insurance marketplace and ensure fair policy rates by July 1.
In a statement to NBC 7 about not renewing policies, State Farm said "their decision was made after careful analysis of State Farm's financial health, which continues to be impacted by catastrophe exposure, reinsurance costs and the limitations of working within decades-old insurance regulations."
Lawson-Remer acknowledges this won’t be an easy fix.
"The state's insurance system is broken and there is difficult work ahead," Lawson-Remer said.
