California's largest insurer, State Farm, recently notified California's Department of Insurance to allow them to hike home insurance rates for millions of residents, or they will drop coverage of many insured. The request comes amid the state's ongoing insurance crisis as coverage costs increase.
Several insurers, such as Allstate, Farmers Direct, and State Farm, have limited coverage or stopped conducting business entirely in the Golden State, citing the growing risks of climate disasters. In turn, over 50% of all Californians believe they have been affected by climbing property prices or dropped by their insurer in the last year. Applying with a new provider also becomes challenging, with few firms offering coverage.
