SAN DIEGO — State Farm is dropping 30,000 homeowners insurance policies in California starting this summer.
Including homeowners living in 50 zip codes across San Diego County.
"With what's happened in our insurance market, these carriers are just not profitable in California,” said Matthew Clark with C3 Risk & Insurance Services.
Clark knows all about the fallout from State Farm's decision.
State Farm
Many of his clients live in Rancho Santa Fe, where more than 50% of all State Farm policies are getting dropped.
"I had a client reach out. His premium was State Farm and he's getting a cancellation in July. With State Farm, it was around $12,000. And his new premium is going to be $40,000. Overnight, you know, it just happened, you know, they used to pay a normal premium for the area. But now they're looking at, you know, almost 4x," said Clark.
Earlier this week, State Farm disclosed where they will discontinue coverage, citing inflation, regulatory costs and increasing risks from catastrophes.
San Diego Zip Codes
Of the 50 impacted zip codes in San Diego, ones located in Rancho Santa Fe top the list, followed by Jamul, Tierrasanta, Lakeside, El Cajon and Mission Valley.
"It's definitely a difficult time. Right now, it's about as bad as it's ever been in my 30 plus years doing this genuinely," Karl Susman is an insurance industry expert, and owner of Susman Insurance Agency.
Susman’s best advice for those impacted is to start looking for a new insurer right away and don't hesitate when you find an alternative plan, even though it's likely more than what you're used to paying.
"If you're getting a non-renewal letter from State Farm today, it doesn't mean your coverage ends tomorrow. It means you're going to be non-renewed for your next policy renewal. That means you should take the time right now as much time as you can to start looking for replacement coverage. Because replacement coverage, as you probably know, is very hard to come by. If you find something that you can get right now, don't wait for your policy to be non-renewed. Take that new policy, you can either have duplicate coverage, or you can just cancel the State Farm policy earlier," said Susman.
You can always sign up for the state's Fair Plan, which is available to everyone, but it's pricey, doesn't offer as much coverage, and there's a backup right now with so many people applying.
Another thing to keep in mind if you're not getting dropped - State Farm's credit rating has been downgraded to a 'B' - meaning some of its customers may have trouble getting claims paid.
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