State Farm will discontinue coverage for 72,000 houses and apartments in California starting this summer, the insurance giant said this week, nine months after announcing it would not issue new home policies in the state
The Illinois-based company, California’s largest insurer, cited soaring costs, the increasing risk of catastrophes like wildfires and outdated regulations as reasons it won’t renew the policies on 30,000 houses and 42,000 apartments, the Bay Area News Group reported Thursday.
Are US loans not given with the prerequisite that the property is insured? Wouldn’t pulling out unilaterally fuck everyone with a loan?
if it was allowed to withdraw prior to the loan being paid off yes, if they can’t secure another insurance anyway, but in my opinion that isn’t the insurance companies problem, they only provide their service, they are not involved with the financial issues of the broker/lender. It would fall on the consumer choosing to live in a potentially dangerous area to insure. That being said at least in this situation, the state has acknowledged that it’s an issue for homeleasers, and has given an alternative, but people dislike the cost of the insurance.