State Farm Is No Longer Insuring Homes In California!

LNU lightning complex fire

As of 2 days ago, State Farm is no longer insuring homes in California. Yes, you read that right. Due to the rising costs of rebuilding in California paired with the risks of wildfire here in California, they will no longer be accepting new homeowners insurance applications for insurance in this state.

A quick personal story: My wife and I bought a home in fire country a few years ago. Out in Lake Berryessa, to be exact. We couldn’t use Allstate (my go to insurance provider), because their quote was so high. We ended up going with State Farm because they were thousands of dollars a year cheaper than their competitors. Fast forward 2 years. We sold that house after remodeling the whole house. 30 days after our close of escrow, there was a sever wildfire that burned down 1/3 of the entire community of Lake Berryessa. It was the LNU Lightning Complex fire. This fire burned down 363,220 total acres, destroyed 1,491 structures, and caused 6 civilian fatalities.

Unfortunately, this story is becoming more and more common here in California. Fires are getting bigger and causing more damage. Meanwhile, builders of new construction are looking for cheaper areas to develop, which are getting farther away from cities and deeper into areas of thick vegetation. It is a recipe for disaster. Now, State Farm has seen the writing on the walls and they have pulled out of the state completely for new homeowner’s policies.

If you would like to read an article about State Farm’s latest move to pull out, click this link Here for an NPR article.

If you want to read about the LNU Lightning Complex Fire, click Here

This is a wikipedia article on the LNU fire.