Headline: Farmers Insurance Joins Other Major Firms in Limiting Homeowner Policies in California
Farmers Insurance has become the latest major insurance company to restrict homeowner policies in California. The decision is attributed to mounting inflation and an uptick in extreme weather events in the state. The move follows similar policy limitations by other significant insurers Allstate and State Farm earlier this year.
Insurer Reaction to Rising Inflation and Severe Weather
In a statement issued to KCRA, Farmers Insurance announced the commencement of its policy restriction on July 3. The company explained, “With record-breaking inflation, severe weather events, and reconstruction costs continuing to climb, we are focused on serving our customers while effectively managing our business.” It added that new homeowners insurance policies in California would be limited “to a level consistent with the volume we projected to write each month before recent market changes.”
The Rise in Insurance Policy Limitations
This development marks the third major insurance firm to limit homeowner policies in the Golden State. Allstate and State Farm had previously made similar announcements. This trend is partially attributable to the increased risk of wildfires in California. However, despite these restrictions, California’s Insurance Commissioner affirms that there are still over 100 active insurance companies in the state.
Consumer Advocacy and Insurance Alternatives
Consumer advocates have reassured homeowners that numerous smaller insurance firms are still operational and able to assist in California. In June, California’s Insurance Commissioner, Ricardo Lara, stated that his department had no plans to take action against major insurance companies that were ceasing to accept new policies in the state. In an interview with KCRA 3, Lara clarified that he did not have the authority to override these companies’ decisions.
The Commissioner’s Focus Moving Forward
Despite these recent changes in the insurance landscape, Lara affirmed his commitment to protecting consumers. “We’re going to focus on the things we can do, which is bringing companies together, having the conversation, making sure consumers are protected and don’t lose their coverage, and that’s what we’re going to focus on,” Lara said. This statement underscores the critical balance between effective business management and consumer protection amid challenging market conditions.
For more information, please refer to the original articles: [Allstate and State Farm policy limitations](https://www.kcra.com/article/allstate-also-stopped-writing-new-property-insurance-policies-in-california-report-says/44077831), [Small insurance companies that can still help](https://www.kcra.com/article/california-property-owners-state-farm-announces-its-not-taking-on-new-policies/44044783), [California Insurance Commissioner’s decision](https://www.kcra.com/article/california-insurance-ricardo-lara-state-farm/44100050).
Original Story at www.kcra.com – 2023-07-07 15:54:00
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