State Farm Reverses Decision on Homeowners’ Policies with Conditional Coverage

State Farm Insurance announces a reversal of its earlier decision and will continue to honor some homeowners' policies in California, but with significant conditions. The insurance giant, which is the largest provider of homeowners' insurance in the state, initially declared in March that it would not renew approximately 30,000 homeowners' policies due to increased risk factors, particularly wildfires.

Under the new terms, State Farm will not cover fire damage directly. Homeowners wishing to maintain their policies must purchase additional fire coverage through California's FAIR Plan. The FAIR Plan is a state-mandated insurance pool that provides basic fire. . .