Home US State Farm is changing major insurance policies after the devastating fires in LA… but not everyone is benefiting

State Farm is changing major insurance policies after the devastating fires in LA… but not everyone is benefiting

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In a major reversal, the insurance company said it would renew policies in the hard-hit Pacific Palisades neighborhood, joining thousands of others in Los Angeles County.

State Farm will offer renewals to policyholders affected by the devastating wildfires it previously sought to stop.

In a major reversal, the insurance company said it would renew policies in the hard-hit Pacific Palisades neighborhood, along with thousands of others in Los Angeles County. The LA Times reported.

However, the offer does not apply to policies that had already expired when the deadly fires broke out on January 7.

State Farm said in March it would stop offering insurance to 72,000 California homes, blaming the risk of natural disasters and the impact of inflation.

The Department of Insurance said that of the policies the company declined to renew, more than 7,600 were in the Palisades fire zone, the outlet reported.

It is unclear how many were already gone when the fires started.

“We want to help people recover, and that’s exactly what we’re doing now with those affected by the fires,” said Jon Farney, CEO of State Farm.

“It’s such a terrible tragedy,” he told the outlet in an interview shortly before the company announced the policy change.

In a major reversal, the insurance company said it would renew policies in the hard-hit Pacific Palisades neighborhood, joining thousands of others in Los Angeles County.

The company’s decision to limit coverage has sparked outrage given the devastation caused by the wildfires, which have damaged or destroyed more than 12,000 structures and killed more than 20 people.

State Insurance Commissioner Ricardo Lara last week urged insurance companies to suspend pending non-renewals in the Palisades and Eaton fire zones.

His spokesman, Michael Soller, told the LA Times that the department was in discussions with State Farm to get more details about the announcement and what it could mean for residents.

‘All eyes are on insurance companies at the moment, including mine. We continue to work to ensure everyone’s claims are paid fairly, promptly and in full,” Lara said in a statement Wednesday in response to State Farm’s decision.

A State Farm spokesperson said policyholders in fire zones would be offered a one-year renewal.

Those with total losses, meanwhile, would get a two-year extension as required by law.

State Farm will offer renewals to policyholders affected by the devastating wildfires it previously sought to stop

State Farm will offer renewals to policyholders affected by the devastating wildfires it previously sought to stop

Tens of thousands of people in the LA area have been displaced or left homeless after losing their homes in the catastrophic fire

Tens of thousands of people in the LA area have been displaced or left homeless after losing their homes in the catastrophic fire

“We want to help people recover, and that's exactly what we're doing now with those affected by the fires,” said Jon Farney, CEO of State Farm.

“We want to help people recover, and that’s exactly what we’re doing now with those affected by the fires,” said Jon Farney, CEO of State Farm.

While the decision is good news for many policyholders, some consumer advocates believe this is one of many steps the company should take.

Carmen Balber, executive director of California-based organization Consumer Watchdog, told DailyMail.com: ‘State Farm’s announcement is good news for homeowners who faced loss of coverage, but it’s the least the company can do .’

Farney told the LA Times on Tuesday that it has received 6,300 home and auto claims to date, making it the largest wildfire disaster the insurer has experienced.

While he said it is too early to determine the damage, some estimates put it at more than $200 billion, which would make it the costliest disaster in U.S. history.

“This early in this type of event, especially as it is still ongoing, we have no information on how big the event will be for us, let alone for the industry,” he said.

“All eyes are on insurance companies right now, including mine,” said state Insurance Commissioner Ricardo Lara

“All eyes are on insurance companies right now, including mine,” said state Insurance Commissioner Ricardo Lara

Insurance Commissioner Lara also announced that he has expanded a moratorium issued last week that prohibits insurers from issuing new cancellation or non-renewal orders for one year, regardless of whether they have suffered a loss or not.

Last year, State Farm gave California an ultimatum: It threatened to eliminate coverage if it didn’t allow it to raise home insurance rates for millions.

Other insurance companies, including Allstate and Farmers Direct, also have limited coverage or have stopped doing business in the Golden State altogether.

This led California to introduce new regulations to ease the state’s home insurance crisis — days before the deadly fires broke out.

It comes as cash-hungry landlords and real estate agents are also accused of driving up rents in fire-ravaged areas. by more than double – as fires have left thousands of residents homeless and displaced.

OOpportunistic landlords have quickly raised rents by as much as 134 percent in some parts of Los Angeles, according to charts reviewed by DailyMail.com.

The shocking increases have occurred despite an emergency declaration from California Governor Gavin Newsom, which bans price increases above 10 percent of pre-disaster prices, with penalties of up to a year in prison and a $10,000 fine.

The inflated figures have sparked outrage among tenant rights advocates and some local real estate agents who have condemned the behavior as “predatory” and “disgusting.”

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