State Farm Drops 72,000 California Home Insurance Policies, Mostly in Bay Area, Due to Wildfire Risks and Costs

State Farm is discontinuing over 72,000 home insurance policies in California, with Bay Area counties having the most policies dropped.

In some Bay Area zip codes like Orinda, over half of State Farm's policies will not be renewed.

State Farm blames increased wildfire risk, regulations, and costs for the discontinued policies.

Homeowners losing coverage may have to get insurance from the expensive state FAIR Plan insurer of last resort.

The state is looking to change regulations to allow insurers to price policies on a home-by-home basis to attract companies back.