State Farm discontinuing 72,000 home insurance policies in California in latest blow to state market

SACRAMENTO, Calif. (AP) — Insurance giant State Farm says it will discontinue coverage for 72,000 houses and apartments in California starting this summer. The announcement this week comes nine months after the Illinois-based company said it would not issue new home policies in the state. California’s largest insurer is citing soaring costs, the increasing risk of catastrophes like wildfires and outdated regulations as reasons it won’t renew the policies on 30,000 houses and 42,000 apartments. The California Department of Insurance says State Farm will have to answer questions from regulators about its decision. It is not immediately clear whether the department may launch an investigation.