State Farm Won’t Renew Coverage , for 72,000 Homeowners in California.<br />The news comes nine months after the insurance giant announced that it wouldn't issue any new home policies in California.<br />The news comes nine months after the insurance giant announced that it wouldn't issue any new home policies in California.<br />State Farm cited rising costs, the heightened risk of wildfires and certain regulations as reasons for not renewing the 72,000 policies, CBS News reports. .<br />State Farm cited rising costs, the heightened risk of wildfires and certain regulations as reasons for not renewing the 72,000 policies, CBS News reports. .<br />This decision was not made lightly <br />and only after careful analysis of <br />State Farm General's financial health... , State Farm, via statement.<br />... which continues to be impacted <br />by inflation, catastrophe exposure, <br />reinsurance costs, and the limitations <br />of working within decades-old <br />insurance regulations, State Farm, via statement.<br />State Farm General takes seriously our <br />responsibility to maintain adequate <br />claims-paying capacity for our <br />customers and to comply with <br />applicable financial solvency laws, State Farm, via statement.<br />It is necessary to take <br />these actions now, State Farm, via statement.<br />However, both the insurance company and <br />the California Department of Insurance <br />will have to answer to regulators.<br />One of our roles as the insurance <br />regulator is to hold insurance <br />companies accountable for <br />their words and deeds, Michael Soller, Deputy Commissioner of the <br />Communications and Press Relations Branch, via CBS News.<br />We need to be confident in <br />State Farm's strategy moving <br />forward to live up to its obligations <br />to its California customers, Michael Soller, Deputy Commissioner of the <br />Communications and Press Relations Branch, via CBS News.<br />State Farm did not disclose the locations of the discontinued policies or the criteria it used for determining which policies wouldn't be renewed.<br />It is not yet clear if an <br />investigation will be launched
