Insurance Giant Threatens to Drop Entire State of California

(TargetDailyNews.com) – California’s liberal tendencies are manifesting real consequences in terms of whether or not residents of the state can afford basics like home insurance coverage. Government-enforced caps on what the companies can charge homeowners across the Golden State have already caused large insurance carriers to stop providing coverage to Californians, now the last major company is threatening to leave the state as well.

State Farm claims financial difficulties even though it announced astounding record-breaking profits. Despite the company’s claim that its assets are worth over $143.2 billion and the yearly net income or profits totaled $1.2 billion in 2021, they’ve told the government of California that it needs a third major hike in its rates for things like home insurance coverage, renter’s insurance, and condominium coverage to cover the increased risk “due to climate change” of regular occurrences like earthquakes, mudslides, wildfires, and leftist crazies throwing a riot in major cities.

The company said that unless they’re allowed to hike the rates for their coverage across the state (30% hike for homeowner’s insurance, 36% increase for condo-owners, and 52% for renter’s insurance) they’ll stop providing coverage to everyone in California. State Farm claims the threats to their potential profits are too great in its filings on the matter.

Many residents of California go uninsured due to the costs being high and lack of providers in the area. Companies are also adding exclusions to policies for man-made eruptions of violence including war, insurrections, and riots.

Ricardo Lara isn’t buying State Farm’s claims of financial difficulties. He suggested that the situation raises “serious questions” about the financial health of the company, highlighting recent disclosures about net worth and profit which claimed the company had hundreds of billions in assets and was making over a billion dollars per year in profit.

Ultimately the issue will take months to resolve, if not over a year. The officials involved in negotiating a resolution generally don’t move quickly on these issues and the public commentary often exaggerates the situation.

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