In the wake of the ongoing wildfires crisis, State Farm has temporarily halted its homeowner non-renewal policies in Los Angeles County.
USA Today reports this reversal of corporate strategy will only apply to residents whose policies had not lapsed by Jan. 7, when the wildfires broke out. State Farm customers in Los Angeles County can renew for another policy, while policyholders in the fire zones with total losses will be able to renew for two policy terms.
Since the crisis began, State Farm said its claims department received more than 7,400 home and auto claims from the impacted areas.
“Customer contact is at 90%,” the company said in a statement. “We are putting tens of millions of dollars back into customers’ hands. These numbers will rise as residents return and assess damage.”
The company stopped selling new home insurance policies in California in 2023 because of wildfire risk and rapid inflation in construction costs and then announced plans in 2024 it would not renew its 30,000 property policies in the state, including more than two-thirds of those in Pacific Palisades where the wildfires have been most severe.
In announcing the new reversal, the company added, “We are focused on our customers and helping them recover from the largest fire event we have ever experienced in the state.”
Separately, new data from Redfin determined that approximately one of every seven (14%) homes within the perimeters of the Palisades and Eaton fires in the Los Angeles area have been destroyed or damaged, a total of 6,354 residences. For Los Angeles County as a whole, 0.17% of all homes were destroyed or damaged by the Palisades or Eaton fires. Single-family homes accounted for the vast majority (89%; 5,636) of the homes that were destroyed or damaged, while 11% (707) were units in multifamily properties, and less than 1% (11) were mobile homes.
On Saturday, Gov. Gavin Newsom announced commitments from five banks – Bank of America, Citi, JPMorgan Chase, U.S. Bank and Wells Fargo – enabling homeowners impacted by the wildfires for a 90-day grace period on their mortgage payments. The banks will not report these payments to credit reporting agencies and will provide a 90-day waiver of mortgage-related late fees and protection from new foreclosures or evictions for at least 60 days for customers whose properties were damaged by the wildfires.
“After so much trauma, we hope this deal will provide thousands of survivors a measure of relief. These financial protections will enable residents to concentrate on taking care of their immediate needs rather than worrying about paying their mortgage bills. I thank each of the financial institutions that are offering this help for Californians recovering from this catastrophic firestorm,” Newsom said in a statement.
