Changes in State Farm Insurance policies that could directly affect you

Thousands of State Farm Insurance company policyholders in California will be affected by some measures announced in March, which will begin to be implemented starting in July this year.

A few months ago, State Farm reported in a statement that “to ensure its long-term sustainability in California” it had to make “some difficult but necessary decisions” that will affect a portion of California policyholders. Here are the new changes.

State Farms Insurance Changes That Could Affect You

According to what the company reported, approximately 30,000 homeowners, rental housing and other property insurance policies (residential community associations and business owners) will not be renewed.

Additionally, commercial apartment policies will no longer be offered with the non-renewal of all of those approximately 42,000 policies.

“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. It is necessary to take these actions now,” State Farm shared.

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When do State Farm changes take effect in California?

The insurance company announced that these changes will occur on a rolling basis this year, beginning July 3, 2024, for homeowners, rental housing, residential community association and businesses policies. Then on August 20, 2024, the changes will impact commercial apartment policies.

Affected customers will be notified before their policy expires and other coverage options will be shared with them. Policies not affected by the decision will continue to be serviced by State Farm independent contractor agents licensed in California.