The insurer experienced a “significant” increase in catastrophic claims leading to the losses Last year, State Farm insurance company recorded a $6.3 billion net loss partially due to what the insurer called a “significant” rise in home insurance damage claim severity. As large as the loss was, it was smaller than what the insurer experienced in 2022 In 2022, the insurance company reported having lost a net $6.7 billion. Still, when State Farm made its announcement about 2023, it confirmed that it was “financially strong”, as its auto coverage’s net…
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State Farm will no longer sell home insurance in wildfire-prone California
The giant has announced that it is leaving the state’s homeowners’ market due to high risk and construction costs. State Farm has announced that due to spiking wildfire risks and construction costs, it is leaving selling in California’s home insurance market altogether. The insurer is stopping new sales of the coverage in the state, which it says has become too expensive. State Farm issued an official media release to announce its withdrawal from the home insurance market in California. It stopped accepting business and personal applications on May 27. That…
Read MoreState Farm home insurance and ADT partner up for loss prevention and detection
The insurer recently announced an investment of $1.2 billion into the security company. State Farm recently announced that it has invested $1.2 billion into the ADT Inc security company, for approximately 15 percent equity and a move to support new home insurance advancements. The partnership between the two companies allows the insurer to imagine new forms of coverage. By working with ADT security, State Farm will be looking into ways to innovate the home insurance experience. This could include new applications for Smart Home technology to be applied to property…
Read MoreState Farm Neighborhood Assist seeks votes for 2021 grant finalists
The insurance company is holding its annual support event for non-profits for the tenth year. This year marks the tenth anniversary that State Farm Neighborhood Assist will be awarding 40 non-profit organizations with $25,000 each. The grants are meant to help the non-profits to fund local community improvement projects. Voting for the finalists for the State Farm Neighborhood Assist grants is already underway. The public can continue to vote for the organizations they want to win from now through August 27. Any individual is able to vote up to 10…
Read MoreState Farm homeowners insurance not required to cut rates, says judge
The California Department of Insurance has been fighting a legal battle with the insurer over premiums. The California insurance commissioner was wrong in saying that State farm homeowners insurance rates had to lower. A judge ruled that the insurer was not required to charge its home and renter policyholders less. The decision stepped around a current unresolved question regarding Proposition 103 and its reach. Proposition 103’s author was among those who criticized the decision regarding State Farm homeowners insurance rates. California Insurance Commissioner Dave Jones accused State Farm of profiting…
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