State Farm plans return to California home insurance in December
The insurer will write new policies in high fire risk areas only for homeowners meeting the Wildfire Prepared Home Plus standard.
By Hans Laetz
State Farm Insurance plans to re-enter the lucrative California home insurance market in December. State Farm has told the California Department of Insurance it will again start issuing policies in some very high fire risk areas.
But the new policies will only be sold to homeowners who meet strict new wildfire safety standards, standards set by an outfit called the Insurance Institute for Business and Home Safety. They call this the Wildfire Prepared Home Plus standard.
It requires homeowners to upgrade their doors and their decks to be made of non-combustible materials, to install double-pane glass on the windows, and to move all detached structures to at least 30 feet away from the main home.
If the California Department of Insurance Wednesday approves this, the company will reopen for new business starting in December.
State Farm has had massive rate increases recently — 20% two years ago and 17% earlier this year.
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