---
title: "Did State Farm drop California Homeowners before Wildfires?"
description: "State Farm is one of many insurance companies that isn't writing new policies in California or cancelling existing policyholders. California's strict insurance regulations have made it hard for companies to raise rates and the newest fires may test homeowners even more."
canonical: "https://www.coveragecat.com/blog/did-state-farm-drop-california-homeowners-before-wildfires"
last-updated: "2026-08-13"
---

# Did State Farm drop California Homeowners before Wildfires?

Did State Farm drop California homeowners days before the Eaton and Palisades wildfires? **Not exactly.**

### **What's Actually Happening?**

State Farm is just one of many insurance companies that have been **leaving California for years.** Since 2020, insurance companies have been shrinking their coverage in high-risk wildfire areas or leaving the state entirely. Why? **Wildfire damage is getting more expensive, and California's strict insurance regulations have made it hard for companies to raise rates to keep up.**

Recently, State Farm made waves by requesting a [**22% rate increase**](https://www.cbsnews.com/sanfrancisco/news/state-farm-emergency-rate-hike-request-raising-alarm-bells-for-some/) for its California homeowners' policies. That's on top of its 2023 decision to [**stop writing new policies in the state**](https://newsroom.statefarm.com/state-farm-general-insurance-company-california-new-business-update/)**.** This move isn't about suddenly canceling fire victims—it's part of a [broader California insurance crisis affecting multiple carriers](https://www.coveragecat.com/insurance-types/state-farm-allstate-dropping-california-customers) as they try to stay profitable while managing skyrocketing wildfire risks.

### **Are Homeowners Being Dropped?**

Yes—but not suddenly and not because of one specific wildfire. **State Farm and other insurers are gradually non-renewing policies in high-risk areas.** This means that when your policy term ends, you might not be able to renew it with your current insurer. It's frustrating, but it's not the same as canceling coverage overnight while a fire is raging. [Understanding these nonrenewals due to wildfire risk](https://www.coveragecat.com/insurance-types/ca-nonrenewals-due-to-wildfire-risk) can help homeowners prepare and find alternatives before their coverage ends.

If you're in California, it's becoming [**harder to find home insurance, especially in wildfire-prone areas**](https://www.cnbc.com/2024/02/05/what-homeowners-need-to-know-as-insurers-leave-high-risk-climate-areas.html)**.** That's why so many homeowners are turning to the [**California FAIR Plan**](https://www.coveragecat.com/reviews/california-fair-insurance), a last-resort insurance option that only covers fire damage—not theft, liability, or other risks.

### **What Should You Do If Your Policy Is Canceled?**

If you get a [**non-renewal notice**](https://www.coveragecat.com/insurance-types/dropped-by-home-insurance-company), don't wait until the last minute. [**Start shopping for a new policy right away.**](https://www.coveragecat.com/intake/) Work with an insurance agent who knows the California market and can help you find a [**FAIR Plan alternative**](https://www.coveragecat.com/reviews/delos)—a private insurer that still covers fire risk.

Also, don't assume the FAIR Plan is your only option. **It can be expensive and may not provide full coverage.** Always compare different insurers to see if you can find a better deal. If you do file a claim, be prepared—California homeowners have faced [significant challenges with claim denials and delays](https://www.coveragecat.com/insurance-types/california-homeowners-insurance-claim-denials-and-delays) in recent years.

### **Stay Informed, Don't Panic**

Yes, home insurance in California is a mess right now. But no, State Farm isn't canceling policies the day a wildfire hits. The bigger problem is that insurance companies are **slowly making it harder to stay insured at all.**

If you own a home in a wildfire-prone area, **stay on top of your insurance situation.** Watch for renewal notices, shop around, and don't wait until it's too late to find new coverage. **Being proactive is the best way to protect your home—and your wallet.**