California Home Insurance Crisis Deepens as State Farm Leads Insurer Exodus

State Farm is withdrawing over 70,000 homeowner insurance policies in California and exiting the apartment insurance market due to state restrictions on raising rates.

Other major insurers like American National are also withdrawing from California due to concerns over profitability stemming from rate regulations.

California's insurance commissioner has focused on protecting policyholders from non-renewals after wildfires rather than addressing root causes.

The state's FAIR Plan insurer of last resort now covers 3 times more policyholders than intended as regular insurers pull back.

Proposition 103 gives the insurance commissioner power over rate changes, creating a complex and lengthy process compared to setting market rates.