Firefighters work to contain wildfires near Eaton Canyon in California on Thursday, January 9, 2025. Photo: Amanda Bronstad/ALM.
In wake of the deadly wildfires impacting Southern California, State Farm is pausing non-renewals for homeowners, rental dwelling and residential community association policies in Los Angeles County.
The decision, effective as of Jan. 7, 2025, comes after the state’s largest insurance company announced in March 2024 that it would withdraw coverage of 72,000 home and apartment policies — citing inflation, regulatory costs and rising catastrophe risk for the move.
“We are focused on our customers and helping them recover from the largest fire event we have ever experienced in the state,” State Farm said in a statement sent to PropertyCasualty360.com. “Our claims force is the largest in the industry and we are bringing the full scale and force of our catastrophe response teams to help customers recover – whether they are on the ground in LA or across the country. As of Jan. 17, we’ve received over 8,300 home and auto claims and have already put well over $50 Million back into customers’ hands."
State Farm insures 250,000 homes and 880,000 automobiles in LA County. The company insures over one million homes and more than four million autos across the state.
To date, the LA wildfires have claimed at least 27 lives and destroyed nearly 15,000 structures.
According to the California Department of Forestry and Fire Protection, the Palisades fire has consumed roughly 23,713 acres and is 59% contained, while the Eaton fire has burned roughly 14,021 acres and is 87% contained.
In response to the wildfires, the National Association of Mutual Insurance Companies (NAMIC) asked Congress to reintroduce and pass legislation aimed at preventing wildfires and hardening the built environment.
“The catastrophic wildfires continue to wreak havoc on California residents and communities, and insurers stand ready to help on the long road to recovery,” said Jimi Grande, NAMIC’s senior vice president of federal and political affairs, in a statement. “The process will be long and difficult for victims, but it should motivate Congress to reduce the threat of massive wildfires like these. We can’t control the winds, but we can reduce the fuel for wildfires and strengthen our defenses to keep them from spreading.”
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