State Farm to stop accepting homeowners insurance applications in California

Re:State Farm to stop accepting homeowners insurance applica... by debacle on Saturday May 27, 2023 @07:35PM (#36099525)

It's common for carriers to stop writing insurance in places, but apart from Florida I haven't seen large carriers like State Farm pull out of entire states in this way.

[ Parent | on HN ]

Re:State Farm to stop accepting homeowners insurance applica... by itake on Saturday May 27, 2023 @07:40PM (#36099571)

Insurance carriers pulled out of WA during the LTC crazy in 2020.

The state passed a law that was basically, pay 0.8% tax for the rest of your life or buy private LTC care for 30 days and avoid paying the tax forever.

The insurance providers were not happy to see people joining for 1 mo and then canceling.

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Re:State Farm to stop accepting homeowners insurance applica... by DaveMebs on Saturday May 27, 2023 @07:46PM (#36099614)

They didn’t pull out in WA, they just stopped offering really cheap plans that were easy to cancel. They continued to offer higher-end LTC Insurance.

[ Parent | on HN ]

Re:State Farm to stop accepting homeowners insurance applica... by Retric on Saturday May 27, 2023 @08:19PM (#36099848)

Which is a little silly as people canceling LTC insurance early is just about the closest thing to free money you’ll find in the insurance industry.

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Re:State Farm to stop accepting homeowners insurance applica... by Schiendelman on Saturday May 27, 2023 @11:16PM (#36100843)

It isn’t. The costs associated with setting up the policy take a while to recover.

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Re:State Farm to stop accepting homeowners insurance applica... by KingMachiavelli on Saturday May 27, 2023 @08:38PM (#36099961)

Wouldn't insurance providers love getting 1 month of premiums with nearly 0 risk of any actual claims?

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Re:State Farm to stop accepting homeowners insurance applica... by treis on Saturday May 27, 2023 @08:52PM (#36100027)

These companies have high customer acquisition costs and are almost certainly losing money on a one month policy.

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Re:State Farm to stop accepting homeowners insurance applica... by nimih on Saturday May 27, 2023 @08:01PM (#36099717)

I havent work in the P&C industry for many years so I have no special knowledge here, but given the past half decade of CA wildfire seasons and what the climate scientists have to say about what’s coming down the line, it seems pretty plausible that the catastrophe modeling for CA fire risk looks similar to FL’s hurricane risk.

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Re:State Farm to stop accepting homeowners insurance applica... by MisterBastahrd on Saturday May 27, 2023 @08:29PM (#36099912)

https://www.nola.com/news/business/here-are-the-louisiana-in...

The Gulf South has been having a tough time with a string of catastrophic storms and flooding. Since 2005, Louisiana has been struck by 10 hurricanes. Flood policies have become so incredibly expensive that some people are simply saving money and throwing it into an account because it makes more sense than paying $8K+ to get a home insured for a year.

[ Parent | on HN ]