Can California Fire Victims Sue State Farm for Dropping Coverage? [Video]

As wildfires ravage areas of Los Angeles in California, destroying thousands of homes and businesses, the decision last year by its largest insurer State Farm to reduce its number of policyholders in at-risk areas has caught fresh attention.

State Farm CEO Denies Hardin wrote in a March 2024 letter to California Insurance Commissioner Ricardo Lara that the insurer’s strained finances forced their hand in reducing exposure to risk, and higher rates alone weren’t enough.

“We have been reluctant to take this step, recognizing how difficult it will be for impacted policyholders … We are striving to minimize the impact of the necessary actions that must be taken,” Hardin wrote.

A spokesperson for State Farm told Newsweek previously: “Our number one priority right now is the safety of our customers, agents and employees impacted by the fires and assisting our customers in the midst of this tragedy.”

Newsweek emailed spokespeople for State Farm for further comment.

State Farm was not alone. Other insurers …