No, State Farm did not fully pull out of California, but it pulled back hard. State Farm General Insurance Company (its California-only subsidiary) stopped accepting new homeowners, condo, and most other property applications on May 27, 2023, and in 2024 it non-renewed roughly 72,000 California policies (about 30,000 homeowners and rental dwellings plus 42,000 commercial apartment policies), concentrated in the highest-wildfire-score ZIP codes. State Farm still services its existing California policyholders, still pays claims, and still sells auto insurance, so this is a deep retreat from new homeowners business, not a complete exit from the state. As of May 2026 it is still not writing new home insurance in California.
This guide explains exactly what State Farm did and when, the financial backdrop (surplus problems, the post-Los Angeles-fires emergency rate request, and the March 2026 settlement), how this differs from a full withdrawal and from the separate State Farm Florida entity, and what a non-renewed State Farm customer should do next. For how the whole California market works, start with our California homeowners insurance pillar guide. For the week-by-week market tracker, see our California homeowners insurance news roundup.
Key Takeaways
- State Farm did not fully exit. It paused new homeowners, condo, renters, and most property applications in California effective May 27, 2023, but it still services existing policies and pays claims.
- The 72,000-policy cut was real but targeted. In March 2024 State Farm General announced non-renewals of ~30,000 homeowners and rental dwelling policies plus withdrawal from ~42,000 commercial apartment policies, beginning July 3, 2024, concentrated in top-wildfire-score ZIPs.
- The driver was financial. State Farm General faced surplus erosion, rising reinsurance costs, and rebuild-cost inflation; after the January 2025 LA fires it filed for emergency interim rates.
- The rate outcome is settled. A March 9, 2026 settlement among the CDI, Consumer Watchdog, and State Farm kept the homeowners interim increase at +17.0% and cut the rental dwelling rate from +38% to +32.8%, with refunds plus interest to rental dwelling and condo customers.
- State Farm California is a separate entity from State Farm Florida. State Farm General (CA) and State Farm Florida Insurance Company (FL) are distinct subsidiaries with separate balance sheets; the CA pullback does not mean the FL company exited.
- You cannot get a State Farm quote through a broker. State Farm sells only through captive agents. If you were non-renewed, the real options are admitted carriers, surplus lines, and FAIR Plan + DIC.
- The March 2026 settlement extended the non-renewal moratorium at least one more year, so most current State Farm homeowners are protected from new block non-renewals in the near term.
What "Pull Out" Actually Means Here
State Farm did not surrender its California license or stop operating in the state. What it did was stop the flow of new homeowners business and shrink its existing high-risk book. Those are two different things, and the distinction matters if you are trying to figure out whether your own coverage is at risk.
There are three separate actions people lump together as "State Farm pulled out of California":
- 1.The new-business pause (May 27, 2023). State Farm General stopped accepting new applications for homeowners and most other business and personal property and casualty lines in California. Auto was not part of this pause. (State Farm new-business update, CDI consumer alert)
- 2.The 2024 non-renewals (announced March 2024, effective July 2024). State Farm General trimmed its existing book in the riskiest ZIPs.
- 3.Continued servicing. Existing State Farm homeowners customers who were not in a non-renewal block kept their policies and still file and collect claims today.
So the accurate one-line answer to "did State Farm pull out of California" is: it pulled back from new and high-risk business, but it did not fully withdraw the way it threatened to do in Florida in 2009. For a real example of what a true threatened withdrawal looks like, see our companion blog on State Farm homeowners insurance in Florida.
The Timeline: What State Farm Did and When
The California pullback happened in stages over roughly three years. Here is the verified sequence.
| Date | Action |
|---|---|
| May 27, 2023 | State Farm General stops accepting new applications for homeowners, condo, renters, and most other property and casualty lines in California (auto excluded). |
| March 20, 2024 | State Farm General announces non-renewal of ~30,000 homeowners and rental dwelling policies, plus exit from ~42,000 commercial apartment policies (~72,000 total). |
| July 3, 2024 | The non-renewals begin rolling out, targeting the highest-wildfire-score ZIP codes. |
| January 7, 2025 | The Palisades and Eaton fires destroy more than 16,000 structures; State Farm General faces heavy claims exposure. |
| February 2025 | State Farm General files for emergency interim rates: 22% homeowners, 15% condo/tenants, 38% rental dwelling. |
| May 14, 2025 | CDI grants emergency interim rates of ~17% on homeowners, conditioned on a $400M capital infusion from parent State Farm Mutual; effective June 1, 2025. |
| March 9, 2026 | Settlement keeps homeowners at +17.0%, cuts rental dwelling to +32.8%, drops condo to +5.8%, with refunds plus interest; extends the non-renewal moratorium at least one more year. |
The new-business pause (May 2023)
State Farm General stopped accepting new homeowners and most other property applications effective May 27, 2023, citing historic construction-cost increases, rapidly growing catastrophe exposure, and a hardening reinsurance market. (State Farm new-business update) This was the moment the brand effectively stopped selling new home insurance in California. As of May 2026, that pause is still in effect, so the answer to "is State Farm still writing in California" for new home insurance is no.
The 72,000-policy non-renewals (2024)
On March 20, 2024, State Farm General announced it would non-renew roughly 30,000 homeowners and rental dwelling policies and withdraw from offering about 42,000 commercial apartment policies, for a combined figure of around 72,000 policies. The non-renewals began July 3, 2024 and were concentrated in the ZIP codes with the highest wildfire or fire-following-earthquake scores, identified through satellite and predictive modeling. (Insurance Journal, Bloomberg via Central Illinois Proud) That cut represented roughly 2% of State Farm's California policies, which is why it is a pullback and not a withdrawal.
The Financial Backdrop: Why State Farm Pulled Back
State Farm General pulled back because the math stopped working under California's pre-reform rate rules. The California subsidiary faced surplus erosion (its capital cushion shrank relative to the risk it carried), reinsurance costs it could not pass through to policyholders until late 2024, and rebuild-cost inflation that pushed claim severity well past the rates regulators had approved.
A few structural facts make this clearer:
- State Farm General is the California-only subsidiary. It carries California property risk on its own balance sheet, separate from State Farm Mutual (the national auto parent). When California wildfire losses pile up, they hit the General subsidiary's surplus directly.
- Proposition 103 limited pricing. Until the Sustainable Insurance Strategy reforms, California carriers could not use forward-looking catastrophe models or pass through the net cost of reinsurance in rate filings, so rates lagged actual risk. See the reform mechanics in our California homeowners insurance pillar.
- The January 2025 LA fires made it acute. The Palisades and Eaton fires produced industry insured losses estimated at $28 billion to $35 billion, by far the largest US wildfire insurance event on record. (Verisk)
The emergency rate request and the March 2026 settlement
After the LA fires, State Farm General filed for emergency interim rate increases in February 2025: 22% on homeowners, 15% on condo and tenants, and 38% on rental dwelling. (State Farm California update) On May 14, 2025, Commissioner Lara adopted an administrative law judge's recommendation granting roughly 17% on homeowners, conditioned on a $400 million capital infusion from parent State Farm Mutual, effective June 1, 2025. (CDI)
The full rate case then settled. On March 9, 2026, the CDI, Consumer Watchdog, and State Farm reached a three-party settlement that kept the homeowners interim rate at +17.0% (no further increase beyond the emergency rate), reduced the rental dwelling rate from +38% to +32.8%, and cut the condo rate from +15% to +5.8%, with refunds plus 10% interest back to June 1, 2025 for affected rental dwelling and condo customers. Importantly, the settlement also extended the moratorium on homeowners, rental dwelling, condo, and renters non-renewals and cancellations for at least one additional year. (CDI settlement release, Insurance Journal, CalMatters)
The 17% homeowners figure is roughly half of the 30% State Farm General originally filed for in June 2024. By Consumer Watchdog's calculations, homeowners avoided about $400 million in additional premium versus the original request. (Carrier Management)
How This Differs from a Full Withdrawal
A full withdrawal means a carrier stops writing, non-renews its entire book, and exits the state. State Farm did not do that in California. It stopped new business and trimmed about 2% of its riskiest policies, but the vast majority of California State Farm homeowners are still insured by State Farm today, and the March 2026 settlement extended their non-renewal protection by at least a year.
For contrast, the closest thing to a real attempted full withdrawal in State Farm's history happened in Florida, not California. In January 2009, State Farm Florida filed plans to leave the Florida property market entirely (roughly 1.2 million policies), and only stayed after the Florida regulator attached conditions and negotiated a settlement. That is a different entity and a different story, covered in our State Farm Florida homeowners guide.
State Farm California vs. State Farm Florida: two different companies
The State Farm policy a Californian buys and the one a Floridian buys are issued by different legal entities:
- State Farm General Insurance Company writes property in California. It is the subsidiary that paused new business and ran the 2024 non-renewals.
- State Farm Florida Insurance Company (NAIC #12251) writes property in Florida. It is a separate Florida-domiciled subsidiary with its own balance sheet and its own regulator.
Each subsidiary can pull back independently of the other. The California pullback says nothing about whether the Florida company is open, and vice versa. Both are subsidiaries of State Farm Mutual Automobile Insurance Company, which A.M. Best downgraded to A+ (Superior) from A++ in November 2025 with a stable outlook. (AM Best)
What to Do If State Farm Non-Renewed You in California
If State Farm non-renewed your California home, you have three lanes back to coverage: admitted carriers still writing your ZIP, surplus-lines (non-admitted) carriers, and the FAIR Plan paired with a DIC wrap as the floor. Work them in that order, because the admitted market is usually cheaper and broader than the FAIR Plan stack.
- 1.Shop the admitted market first. Several admitted carriers still write California homeowners in 2026: AAA / CSAA, Mercury, Farmers (cap removed November 2025), Kemper, and selectively Liberty Mutual and Travelers (which announced a Sustainable Insurance Strategy expansion in April 2026). Each has a different ZIP-level appetite. See who is writing in our California homeowners insurance pillar and the news roundup.
- 2.Check high-net-worth and surplus-lines carriers if your dwelling is above ~$1M. Chubb, AIG Private Client, and PURE write high-value California homes selectively, including some Palisades-adjacent enclaves where mid-market carriers will not. See our high-value home insurance overview.
- 3.Use the FAIR Plan + DIC as the floor. If no admitted or surplus carrier will write your home, the California FAIR Plan provides fire-only coverage, and a Difference In Conditions wrap restores liability, theft, water damage, and other excluded perils. Learn the structure in what is the California FAIR Plan and California FAIR Plan vs admitted carrier.
For the full playbook on the 75-day clock, SB 824 wildfire moratoriums, and your fallback options, read what to do after being dropped by your homeowners insurance.
How to Get a State Farm Quote (and Why a Broker Can't)
State Farm sells exclusively through captive agents, so an independent broker cannot quote or bind a State Farm policy. State Farm captive agents are independent contractors who represent only State Farm; they cannot show you other carriers, and brokers like Latent Insurance Services cannot show you State Farm. If you want a State Farm quote, you have to contact a State Farm captive agent directly through the agent locator on statefarm.com.
The practical catch in California right now: even a State Farm captive agent cannot sell you a new homeowners policy, because new-business intake has been paused since May 2023. So if you do not already have a State Farm home policy, State Farm is not currently an option for your home regardless of who you ask. Where a broker helps is everywhere else: comparing the admitted, surplus, FAIR Plan + DIC, and high-value markets that are actually open to you in one pass.
Frequently Asked Questions
Did State Farm pull out of California?
No, State Farm did not fully pull out of California. State Farm General Insurance Company, its California subsidiary, paused new homeowners and most other property applications on May 27, 2023, and in 2024 it non-renewed about 72,000 policies (roughly 30,000 homeowners and rental dwellings plus 42,000 commercial apartments) in the highest-wildfire-risk ZIP codes. It still services existing policyholders, still pays claims, and still sells auto insurance, so this is a major pullback from new home insurance, not a complete withdrawal from the state.
Is State Farm still writing new homeowners insurance in California in 2026?
No. State Farm General has not accepted new homeowners applications in California since its May 27, 2023 pause, and that pause was still in effect as of May 2026. The company has prioritized stabilizing its existing book and securing rate increases over reopening new business. If you do not already have a State Farm home policy in California, you currently cannot buy one.
How many California policies did State Farm non-renew?
State Farm General announced in March 2024 that it would non-renew roughly 30,000 homeowners and rental dwelling policies and withdraw from about 42,000 commercial apartment policies, for a combined total of around 72,000 policies. The non-renewals began July 3, 2024 and were concentrated in ZIP codes with the highest wildfire or fire-following-earthquake scores. That figure represented about 2% of State Farm's California policies.
What happened with State Farm's California rate increase?
After the January 2025 Los Angeles fires, State Farm General filed for emergency interim rate increases. The CDI approved roughly 17% on homeowners effective June 1, 2025, conditioned on a $400 million capital infusion from parent State Farm Mutual. A March 9, 2026 settlement among the CDI, Consumer Watchdog, and State Farm kept the homeowners rate at +17.0%, reduced rental dwelling to +32.8% and condo to +5.8%, issued refunds with interest to rental dwelling and condo customers, and extended the non-renewal moratorium for at least one additional year.
Is State Farm leaving California the same as State Farm leaving Florida?
No. State Farm's California property business is run by State Farm General Insurance Company, and its Florida property business is run by a separate entity, State Farm Florida Insurance Company (NAIC #12251). They have separate balance sheets and separate regulators, and each can change its posture independently. The California pullback does not mean the Florida company exited, and the two should not be conflated.
Can I buy State Farm homeowners insurance through a broker if I was non-renewed?
No. State Farm sells only through captive agents, so no independent broker can quote or bind State Farm. On top of that, State Farm's California new-business pause means even a captive agent cannot write you a new home policy right now. An independent broker like Latent Insurance Services can instead shop the admitted, surplus-lines, FAIR Plan + DIC, and high-value markets that are open to you and compare them side by side.
How Latent Insurance Services Helps
Latent Insurance Services is an independent California brokerage (NPN #20972791) that compares admitted, surplus-lines (E&S), FAIR Plan, DIC, and high-net-worth carrier options in one quote. We do not quote State Farm, because no independent broker can, and because State Farm is not writing new California homeowners business anyway. What we do is build the rest of your shortlist after a non-renewal: we map which admitted carriers will write your specific ZIP and brush score, check high-value carriers if your dwelling runs above $1M, and price a FAIR Plan + DIC stack as the floor so you always have a fallback.
If State Farm non-renewed your home, or you just want to know whether you are still priced competitively, book a 30-minute call with a licensed broker. We will walk through your ZIP, your roof, your prior claims, and your options across every market that is actually open to you. No pressure, no carrier loyalty.