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State Farm announces major change affecting tens of thousands households in CA

With more insurance companies pulling out of the market or limiting coverage recently, some homeowners may have no other option.

"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," the company said in a statement. However, with more insurance companies pulling out of the California market or limiting coverage recently due largely to the elevated risks of natural disasters, some homeowners may have no other option. Many private insurance companies in disaster-prone states are increasing premiums to offset the risks of extreme weather, which makes owning a home even more difficult since the cost of living is already high.

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