Yet another insurance provider is pulling out of California in a move affecting tens of thousands of customers.
Farmers Direct Property and Casualty Insurance Co. stopped issuing new policies as of Sept. 15 in the state, Director of External Communication Luis Sahagun said in an email, citing “an ongoing initiative to increase operational efficiency and mitigate risk exposure.”
The company has started sending non-renewal notices to its California customers, with policies set to begin expiring Dec. 17, Farmers Direct said in a state filing.
The provider insures more than 100,000 policies, including nearly 58,000 for drivers and almost 20,000 for homeowners, according to the filing.
“For the vast majority of affected customers, we will provide an offer to transition them to a different Farmers-related insurer,” Sahagun said, noting customers covered by Farmers entities such as Bristol West, 21st Century and Foremost will not be affected.
Farmers Direct’s move to exit the state follows similar actions by big names such as Allstate and State Farm, as well as smaller providers like AmGUARD Insurance, Falls Lake Insurance and various Kemper Corp. subsidiaries, multiple outlets have reported, noting the impact of wildfires on homeowners and insurers alike.
The state does offer its FAIR Plan, a last-resort option that provides basic fire coverage for high-risk properties. As of spring 2023, more than 100 home insurers remained in California.