Months before the Los Angeles wildfires sparked, State Farm’s California arm was already in trouble, it told state regulators. Its policyholder surplus — the cash it has on hand to pay out claims — had dropped from more than $4 billion in 2016 down to just $1.
Sources told this publication that the mutual is facing a loss totalling around $7.91bn from the fires, and it is understood that State Farm benefits from around $2.5bn-$4bn of reinsurance cover specifically for Californian risks above an attachment point of $1.5bn.
Since the wildfires broke out in early January, State Farm’s claims department has fielded over 7,400 home and auto claims, State Farm said.
About 1,600 policies for Pacific Palisades homeowners were dropped by State Farm in July, the state insurance office says.
Following its announcement that it would pause non-renewals for policyholders to ensure coverage for Los Angeles County residents impacted by wildfires, State Farm on Thursday, Jan. 16, reported receiving 7,850 home and auto claims with numbers expected to rise as damages are assessed.
State Farm said that it has paid out close to $500 million in claims following the wildfires that have ravaged the Los Angeles region. As of Jan. 27, the company has processed a total of 10,100 claims for home and auto damage resulting from the fires.
Insurance company State Farm has canceled plans to air a spot during Super Bowl 59, citing the ongoing fires in Los Angeles as the company’s primary focus.
State Farm Stadium announced in a statement that they are pulling themselves out of the commercial lineup on FOX for Super Bowl 59. The big game will be held at the New Orleans Saints’ home venue, the Caesars Superdome, on Feb. 11. Here’s their statement, per Gabe Lacques of USA TODAY Sports:
Wildfires have destroyed around 90 square miles of area around Pacific Palisades, Pasadena and other communities in the Los Angeles and San Diego areas. Over 16,000 buildings have been destroyed, with hundreds of thousands of people forced to evacuate or placed under evacuation orders.
Insurance giant State Farm has canceled a Super Bowl ad that was set to air during the big game in February — in part, it said, over the raging wildfires in California. “Our focus is firmly on
Key Takeaways Renewal Lifeline for Thousands State Farm’s decision to pause non-renewals could mean the difference between rebuilding or walking away for many wildfire survivors in Los Angeles County.
How the team at Jigsaw Farms came together to save 54 horses during the Pacific Palisades fire in L.A., then lost their entire farm in the blaze.