SAN BERNARDINO COUNTY – The San Bernardino County Board of Supervisors passed a resolution, on June 25, requesting California to declare a state of emergency for insurance crisis.
“The Insurance Commissioner, State Legislature, and the Governor are requested to declare a state of emergency and take immediate emergency regulatory and legislative action to strengthen and stabilize California’s marketplace for homeowners insurance and commercial property insurance,” said a statement on the resolution.
State Farm requests to increase rates by 30%
Supervisor Paul Cook said for the past two years, many of his constituents — particularly in the mountain and foothill communities — have been dropped by big carriers such as Allstate and State Farm, forcing them to find other insurance companies to keep their mortgages.
State Farm, which insures 1 in 5 homes in California, last week, requested to increase rates by 30%. This is after announcing it would be dropping 72,000 houses and apartments this summer. The company also previously said they would not issue new policies due to wildfire risk.