Market
Will State Farm resume issuing new homeowners' insurance policies in California by end of 2025?
3
Resolution / Starting Odds
Yes • 50%
No • 50%
Official announcements from State Farm or regulatory filings
Story
State Farm Cancels 1,600 Policies in Pacific Palisades Before Wildfires
Jan 8, 2025, 10:47 PM
State Farm and several other major insurance companies canceled hundreds of homeowners' fire insurance policies in California last summer, including 1,600 policies in the Pacific Palisades area of Los Angeles County, which is currently experiencing devastating wildfires. The cancellations have left many homeowners, including elderly residents, without coverage during the disaster, exacerbating California's ongoing insurance crisis. The insurers' withdrawal is attributed to regulatory constraints that prevented them from raising premiums to cover increased wildfire risks. State Farm has projected dropping up to 1 million policies in California over the next five years. Other insurers, such as Allstate, have also ceased writing new home and condo policies in the state. The situation raises concerns that the wildfires could break California's insurance market, as insurers pull back from the homeowners market, impacting the availability and affordability of insurance for at-risk residents in fire-prone areas.
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Similar markets
Public awareness campaigns • 25%
Increased funding • 25%
New regulations • 25%
No significant changes • 25%
10,000-20,000 • 25%
Over 30,000 • 25%
Under 10,000 • 25%
20,001-30,000 • 25%
Yes, broader threat legislation • 25%
Legislation proposed but not passed • 25%
No new legislation • 25%
Yes, specific to insurance threats • 25%
Yes • 50%
No • 50%
1,501-2,000 homes • 25%
More than 2,500 homes • 25%
2,001-2,500 homes • 25%
1,000-1,500 homes • 25%
New regulations • 25%
Increased funding • 25%
Public-private partnerships • 25%
No major changes • 25%
No • 50%
Yes • 50%
Other • 25%
UnitedHealth Group • 25%
Anthem • 25%
Kaiser Permanente • 25%
State Farm • 25%
Allstate • 25%
Farmers Insurance • 25%
Other • 25%
No • 50%
Yes • 50%
