State Farm Drops 72,000 Home Insurance Policies in California

State Farm, California's largest insurer, is discontinuing coverage for 72,000 homes and apartments due to rising costs, increasing catastrophe risk, and outdated regulations, likely inflating housing costs for affected residents. The move comes amid a series of destructive wildfires and a yearlong overhaul of home insurance regulations by the state's elected insurance commissioner. The California Department of Insurance has raised questions about State Farm's financial health, while consumer advocates are calling for an investigation into the company's rate hike approval. The cancellations will likely force affected property owners to turn to the California FAIR Plan, a last-resort coverage option that can cost much more than a standard policy, as dependence on it has soared in recent years.