State Farm Dropping 72,000 California Policies, Exiting Apartment Insurance Market Due to Rising Costs

State Farm plans to non-renew about 72,000 property insurance policies in California, including 30,000 homeowners policies and 42,000 commercial apartment policies
The insurer is withdrawing completely from the commercial apartment insurance market in the state
State Farm says the non-renewals are due to inflation, catastrophe exposure, reinsurance costs, and outdated insurance regulations
The company stopped writing new homeowners policies in California last year and raised rates by 20%
The non-renewals impact 2% of State Farm's total policies in the state; affected customers will be notified between July 3 and August 20