In March 2024, State Farm, one of the main American insurers, announced that it was canceling, in California, the home insurance of some 30,000 home owners, including, according to the press, a thousand in the upscale neighborhood of Palisades in Los Angeles, which has just been destroyed by flames. “This decision was not taken lightly”, then explained the firm, which said “affected by inflation, catastrophe exposure, reinsurance costs, and the constraints of decades-old insurance regulation”. And to specify that “In recent years, the number of acres burned in California has increased, and more people are moving to fire-prone areas”.
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-The company had its nose hollow, less than a year before the worst disaster which ravaged Los Angeles and its homes, some with an average value of 3 million dollars (2.9 million euros) not including furniture and works of art. She wasn’t the only one. California does not allow insurers to freely adjust their premiums in a state that is prey to fires and earthquakes. As a result, the insurers have packed up.
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