State Farm makes major insurance policy U-turn after devastating LA fires... but it will not benefit everyone
READ MORE: LA wildfire victims sent warning over insurance company tricks
By TILLY ARMSTRONG DEPUTY CONSUMER EDITOR FOR DAILYMAIL.COM
Published: 11:26 EST, 17 January 2025 | Updated: 15:32 EST, 17 January 2025
State Farm will offer insurance renewals to Los Angeles residents it had planned to drop.
In a major U-turn, the company said it would renew policies in the badly-hit Pacific Palisades neighborhood, alongside thousands more in Los Angeles county.
However, the offer does not apply to policies that had already lapsed when the deadly fires started on January 7.
State Farm said in March that it would stop offering insurance to 72,000 homes across California, blaming the risk of natural disasters and the impact of inflation.
The Department of Insurance said that among the policies that the company had targeted for nonrenewal, more than 7,600 were in the Palisades fire zone.
State Farm - the leading home insurer in California - said around two-thirds of the policies it had planned to cancel were still active when the fires began.
Customers can now renew these if they wish - rather than hunt for a new and likely costlier replacement provider.
Although the decision to cut policies was made last year, it faced renewed scrutiny when the news resurfaced as the wildfires wreaked havoc across LA. The fires have damaged or destroyed more than 12,000 structures and claimed over two dozen lives.
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https://www.dailymail.co.uk/yourmoney/consumer/article-14293541/state-farm-insurance-policy-u-turn-la-fires.html