• Non-renew approximately 30,000 homeowners, rental dwelling, and other property insurance policies (residential community association and business owners). (A rental dwelling policy insures rental home owners. Renters insurance is not affected.)
• Withdraw from offering commercial apartment policies with the non-renewal of all of those approximately 42,000 policies. (A commercial apartment policy insures apartment owners. Renters insurance is not affected.)

These actions are California-specific and will occur on a rolling basis over the next year, beginning on July 3, 2024, for homeowners, rental dwelling, residential community association and business owners policies and on August 20, 2024, for commercial apartment policies. Combined, these policies represent just over 2% of State Farm General’s policy count in California.

This decision was not made lightly and only after careful analysis of State Farm General’s financial health, which continues to be impacted by inflation, catastrophe exposure, reinsurance costs, and the limitations of working within decades-old insurance regulations. State Farm General takes seriously our responsibility to maintain adequate claims-paying capacity for our customers and to comply with applicable financial solvency laws. It is necessary to take these actions now.

We also recognize the Insurance Commissioner’s proposed regulatory reforms, such as streamlining the rate application process, accounting for catastrophe modeling and reinsurance costs in rates, and addressing FAIR Plan vulnerabilities. We will continue to work constructively with the California Department of Insurance, the Governor’s Office, and policymakers to actively pursue these reforms in order to establish an environment in which insurance rates are better aligned with risk. 

We will notify customers impacted by this decision in advance of their policy expiration to provide information on other coverage options. State Farm independent contractor agents licensed in California will continue to service policies not impacted by these decisions. State Farm General’s May 2023 decision regarding new applications remains unchanged. We will evaluate the need for any additional business actions as market conditions change.

 *State Farm General Insurance Company is the provider of homeowners insurance in California

What are my first steps if I have damage?

What can you expect after initially filing a claim?

Does my homeowner's policy cover hurricane damage?

What type of things are not covered by the typical homeowner's policy during a hurricane?

How do you determine what damages my home from the hurricane: flood vs. wind?

What is my hurricane deductible?

How is the hurricane deductible calculated?

Am I covered for tree debris removal?

What else do I need to know about removing downed trees from my property?

Who is going to help me with my claim?

Who clears my property?

Who pays for my living expenses?

How do I replace everything I have lost?

How do I complete a personal contents inventory of my damaged property?

How long does coverage last for a typical insurance policy?

Does State Farm have the resources to pay all of these claims?

Will rates go up for my homeowners insurance?

What if I experience multiple storms in one season?

What are my first steps if I have damage?

• When it is safe to do so, make (or have a contractor make) temporary repairs to prevent further damage to your home or property.
• Save receipts if you purchase items such as tarps, plywood or other supplies to make repairs.
• Take photos/videos of damage for claim documentation.
• To get the claims process started, you can file your claim online, call 1-800-SFCLAIM (800-732-5246) or contact your State Farm agent.

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What can you expect after initially filing a claim?

• After a claim has been filed, a State Farm claims specialist will contact you to discuss the extent of damage and review your policy coverages.
• The complexity and collaboration needed to investigate a claim can sometimes take time, and is necessary for a proper evaluation of your claim.
• If at any time during the claims process, you have questions, do not hesitate to ask your claims specialist. We know this can be a difficult and confusing time. We are here to help you 24 hours a day, seven days a week.

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Does my homeowner’s policy cover hurricane damage?

• Unless the damage is excluded in the policy, a typical homeowners policy provides coverage for accidental direct physical loss to your dwelling and may also provide coverage for personal property damage from a hurricane. Flood damage is not covered.

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What type of things are not covered by the typical homeowners policy during a hurricane?

• Flooding is not covered under homeowners policies. It is a separate coverage that can be purchased through the federal government’s National Flood Insurance Program. State Farm agents enrolled in the NFIP Direct Program are able to write and service flood insurance coverage directly through the federal government program. Homeowners who have flood coverage and have experienced flood damage should report their claim to their flood insurance carrier so that damages can be assessed. To contact NFIP: 1-888-379-9531. 
• Backup Sewer and Drain: If you have water damage, contact your agent for guidance. Damage from water that enters a home through a sewer, drain, or sump pump is excluded from a homeowners’ policy but coverage may be added to your policy for an additional premium. Homeowners should contact their agent for more information.

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How do you determine what damages my home from the hurricane: flood vs wind?

• Policyholders are always encouraged to file a claim should they think they have damage from the hurricane. Coverage and any possible exclusions are then determined during the claims process.

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 What is my hurricane Deductible?

• The insurance industry uses hurricane deductibles to account for increased exposure in areas prone to major storm events such as hurricanes.
• State Farm applies hurricane deductibles when a named storm has been declared by the National Weather Service (NWS).
• We encourage State Farm policyholders to review their insurance policy language for the specific provisions related to hurricane deductibles and contact their State Farm agent if they have questions.
• When does the hurricane deductible apply? Each state differs on when the hurricane deductible will apply. Generally, it will apply when a named storm has been declared by the National Weather Service (NWS). Other conditions apply and are outlined in the policy.

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How is the hurricane deductible calculated?

• Hurricane deductibles vary. If a policy includes one, State Farm policyholders can find it in their policy documents, or they can contact their State Farm agent.

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Am I covered for tree debris removal?

• If a windstorm causes a tree to fall but it does not damage your covered real property (such as your house, fence, carport or garage), the homeowners policy does not cover tree debris removal.
• If a windstorm causes a tree to fall and it damages your covered real property, then coverage is provided to remove the tree from the house, fence, carport or garage to perform repairs to that property. State Farm will also provide up to $1,000 to remove the tree debris from the residence premises. 

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What else do I need to know about removing downed trees from my property?

• When hiring a tree removal company you should make sure they are licensed and bonded.
• Also make sure tarping (if appropriate) is included in their work (or another contractor) so that once the tree is removed from the structure, additional damage does not occur through an open/exposed roof. Water mitigation/removal is the next step to reduce the damage caused by water that may have entered your house through the exposed areas.
• Before signing any contracts, talk with your State Farm claim specialist for guidance following a loss.

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Who is going to help me with my claim?

• The State Farm team is here to help. Our claims operation includes a dedicated, mobile workforce, specially trained to handle catastrophe claims. These teams are prepared to go anywhere in the country within hours of being notified. They provide claim service, 24 hours a day and 365 days a year.

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Who clears my property?

• State Farm homeowners insurance may provide coverage, subject to policy terms and limits, to remove debris from the residence premises. The responsibility to hire someone to clear your land rests with you. We recommend you contact your claim specialist, as they will be able to determine if coverage applies and how much State Farm will pay. Make sure any removal company is licensed and bonded.

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Who pays for my living expenses?

• If covered damage is so extensive that your residence is uninhabitable, then Additional Living Expenses (ALE) may be available. Generally, ALE reimburses you for increased living expenses you incur as a result of your home being uninhabitable and is subject to the deductible and the terms and conditions of the policy. ALE is available to you while your home is uninhabitable and being repaired, replaced or up to 24 months, whichever is shorter, and as otherwise indicated in your specific policy.

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How do I replace everything I have lost?

• For personal contents (the Coverage B portion of your policy), typically, you are initially paid actual cash value (replacement cost minus depreciation). Then, when you actually replace the damaged personal contents, you will receive the difference as a replacement cost benefit. This assumes the replacements occur within the designated time frame of the contract.

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How do I complete a personal contents inventory of my damaged property?

• Your claim specialist is available to assist customers with completing the inventory. Customers who do not need a face-to-face meeting can provide their inventory to their claim handler for processing or submit them electronically directly to their claim file 24/7.
• Customers do not have to wait until their entire inventory is completed to submit to their claim. We encourage submitting inventories by rooms to make it easier for our customers to compile.
• State Farm recommends grouping items of similar quality/price/age: For Example: clothing-jeans-20 pair/shirts-30/etc, cleaning supplies, over-the-counter medication/kitchen utensils as this can help expedite the process. Unusual, specialty or high cost items should be listed individually.
• Again, if you need any assistance with the contents inventory process, all you have to do is ask your claim specialist for help.

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How long does coverage last for a typical insurance policy?  

• An insurance policy is a contract. You pay for coverage for a specified amount of time defined as the policy period (for example six months or a year). The contract protects you for that specified amount of time and for losses you incur under that contract.

• Coverage is not cumulative year to year, meaning your premiums do not add up like a savings account to be used when there is a claim.

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Does State Farm have the resources to pay all of these claims?

• Disasters like these are a reminder that our business is highly volatile. Despite that volatility, our long history of financial strength is what allows us to keep the commitments we have made to our customers, helping to remove some of the uncertainty from their lives during times of loss.

• We have faced countless significant weather and other major disasters over our 95-year history, and we stand ready for more as we help people manage the risks of everyday life, recover from the unexpected, and realize their dreams.

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Will rates go up for my homeowners insurance?

• Rates are determined based on our anticipated need to pay future claims, not to make up for past losses. It is important to note many factors are considered when underwriting and pricing a homeowners insurance policy because each customer’s circumstances are unique.
• We encourage all of our customers to have a conversation with their agent to make sure they are comfortable with the appropriate coverage for their unique situations, including reviewing discounts available to them that could decrease their premiums.

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What if I experience multiple storms in one season?

• Each policy is different and the circumstances around each claim are unique. We encourage customers to speak to their agent about their specific situation and how their deductible would apply.

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Join the conversation on Yammer!

Ronnie Glass sat on the porch watching the clouds roll in. She could hear the rumbling thunder of the approaching storm on the other side of the lake.

She thought she had plenty of time. But out of what she thought was a safe sky came a bolt of lightning that split a nearby tree. She was lucky. The dropped limb didn’t damage her property and she learned a new level of respect for storms.

“I’ve always watched storms in wonderment,” she said. “They can be so beautiful. But they are also powerful and dangerous. I couldn't get inside fast enough. I have a lot more respect for them now.”

According to the National Weather Service, on average 26 people were killed by lightning strikes in the United States each year in the last decade.

Greater lightning awareness has led to the numbers coming down slightly. In 2019, there were 20 direct lightning fatalities, the lowest since record-keeping began in 1941.

Lightning can strike 5 to 10 miles from a thunderstorm. The Insurance Information Institute (III) offers the "30/30 Rule" for personal safety:

• If it takes less than 30 seconds after you see lightning to hear the thunder, you should get indoors and stay there for 30 minutes.

Lightning Strikes Becoming More Costly

According to III, the number of homeowners insurance claims from lightning strikes in the United States also fell in 2019. But, the average cost insurers paid on those claims increased by 11 percent between 2017 and 2019.

The average State Farm claim increased to $11,500 (up from $10,400). The rise is due in part to more “smart homes” and their interconnected electronic systems. If lighting strikes the network, it can damage scores of devices and appliances at once.

Ways to protect your home:

• Install a lightning protection system. You may receive a credit on your homeowners insurance. According to Underwriters Laboratories, 99 percent are effective in preventing lightning damage. The components include:
  • Lightning rods – divert the strike of the lightning from the home directly into the ground.
  • Surge protectors – adding surge protectors can help keep appliances and electronics safe.
• If you're home when as a storm hits, unplug electronics and appliances. (Do not attempt to unplug electronics/appliances during the height a storm.)
• Check your homeowners insurance policy. Not all insurance plans are the same. Make sure yours will cover damage done to your home and/or appliances and electronics.

Be Safe. When thunder roars, go indoors!

• Never stand under a tree during a lightning storm.
• If you can't get indoors, seek lowest level of elevation as possible.
• Stay away from anything metal – bleachers, golf clubs, fencing, etc.
• Immediately get out of bodies of water – showers, lakes, rivers, pools.
• Always seek an indoor shelter; if no other options, a car with the windows rolled up will keep you safe.
• Stay away from doors, windows, and appliances. Use of a cell phone is safe.

She thought she had plenty of time. But out of what she thought was a safe sky came a bolt of lightning that split a nearby tree. She was lucky. The dropped limb didn’t damage her property and she learned a new level of respect for storms.

“I’ve always watched storms in wonderment,” she said. “They can be so beautiful. But they are also powerful and dangerous. I couldn't get inside fast enough. I have a lot more respect for them now.”

According to the National Weather Service, on average 26 people were killed by lightning strikes in the United States each year in the last decade.

Greater lightning awareness has led to the numbers coming down slightly. In 2019, there were 20 direct lightning fatalities, the lowest since record-keeping began in 1941.

Lightning can strike 5 to 10 miles from a thunderstorm. The Insurance Information Institute (III) offers the "30/30 Rule" for personal safety:

• If it takes less than 30 seconds after you see lightning to hear the thunder, you should get indoors and stay there for 30 minutes.

Lightning Strikes Becoming More Costly

According to III, the number of homeowners insurance claims from lightning strikes in the United States also fell in 2019. But, the average cost insurers paid on those claims increased by 11 percent between 2017 and 2019.

The average State Farm claim increased to $11,500 (up from $10,400). The rise is due in part to more “smart homes” and their interconnected electronic systems. If lighting strikes the network, it can damage scores of devices and appliances at once.

Ways to protect your home:

• Install a lightning protection system. You may receive a credit on your homeowners insurance. According to Underwriters Laboratories, 99 percent are effective in preventing lightning damage. The components include:
  • Lightning rods – divert the strike of the lightning from the home directly into the ground.
  • Surge protectors – adding surge protectors can help keep appliances and electronics safe.
• If you're home when a storm hits, unplug electronics and appliances. (Do not attempt to unplug electronics/appliances during the height a storm.)
• Check your homeowners insurance policy. Not all insurance plans are the same. Make sure yours will cover damage done to your home and/or appliances and electronics.

Be Safe. When thunder roars, go indoors!

• Never stand under a tree during a lightning storm.
• If you can't get indoors, seek the lowest level of elevation possible.
• Stay away from anything metal – bleachers, golf clubs, fencing, etc.
• Immediately get out of bodies of water – showers, lakes, rivers, pools.
• Always seek an indoor shelter; if no other options, a car with the windows rolled up will keep you safe.
• Stay away from doors, windows, and appliances. Use of a cell phone is safe.

Who is going to help me with my claim?

Does State Farm homeowners insurance provide coverage for debris removal?

Who pays for my living expenses?

How do I replace everything I have lost?

How do I complete a personal contents inventory?

Do I get an advance on my personal contents so I can begin replacing items?

What do I need to do to get 100 percent of contents coverage?

Do I have enough insurance to cover the value of my home?

How can I figure out the replacement cost of my home?

How long does coverage last for a typical insurance policy?

Does State Farm have the resources to pay all of these claims?

Will my insurance policy be non-renewed?

Will rates go up for my homeowners insurance?

I have heard the term "subrogation". What does it mean and how does it affect me as a State Farm customer?

Can State Farm extend my Additional Living Expense coverage benefit beyond the 24 months contractual limit?

The media has reported on the affordability and availability of homeowners insurance in California. Can I find homeowners insurance in California and is it affordable?

What are my first steps?

• After a claim has been filed, a State Farm claims handler will contact you to discuss the extent of damage and review what is covered under your policy.
• The complexity and collaboration that is needed to make sure we get you back on your feet can sometimes take time and is necessary to make sure we do right by you, our customer.
• If at any time during the claims process, you have questions, do not hesitate to ask your claims handler. We know this can be a difficult and confusing time. We are here to help you 24 hours a day, 7 days a week.

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Who is going to help me with my claim?

• It will take time but State Farm is here to support you from the beginning until the very end.
• The claims process can be complex and it is often necessary to involve multiple claim handlers. This approach to enhanced customer service allows State Farm to provide quality and efficient claim service, 24 hours a day and 365 days a year. Our customers should have confidence that State Farm will bring the necessary people resources to handle our customers’ claims.
• State Farm has catastrophe claim teams in the area helping all of our customers recover from this unexpected tragedy. Our claims operation includes a dedicated, mobile workforce, specially trained to handle catastrophe claims and prepared to go anywhere in the country within hours of being notified. Prior to handling California claims, they were thoroughly trained on the specific requirements of California law.

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Does State Farm homeowners insurance provide coverage for debris removal?

• State Farm homeowners insurance may provide coverage, subject to policy terms and limits, to remove debris from the residence premises. We recommend you contact your claim handler, as they will be able to determine if coverage applies and how much State Farm will pay.

• The choice of who to hire to remove debris from your property is yours. Make sure any removal company is licensed and bonded. Some cities, counties or governmental agencies may offer debris removal in exchange for an agreement that you pay all the money your insurance company pays you for this service.

• State Farm does NOT negotiate debris removal expenses with the county, vendor, or any other entity. It is understood that the county, vendor or other entity is hired by you, our insured, and that they work for you – not State Farm.

• If you receive invoices, estimates or other documentation for debris removal, contact your claim handler.

• Your claim handler is available to assist you with any questions you may have and help facilitate the process with you and the other party.

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Who pays for my living expenses?

• If damage is so extensive that your residence is uninhabitable, then Additional Living Expenses (ALE) may be available. Generally, ALE reimburses you for increased living expenses you incur as a result of your home being uninhabitable and is subject to deductible and the terms and conditions of the policy. ALE is available to you while your home is being repaired, replaced or up to 24 months*, whichever is shorter.
  • With a recent change in California law, losses arising from a declared disaster occurring after September 21^st 2018, Additional Living Expense (ALE) is available for no less than 24 months and may be extended to 36 months for good cause. Additional 6 months extensions may also be granted for good cause. For the 2017 wildfires that occurred in California (e.g. North Bay Tubbs Fire) State Farm's contract provides ALE coverage for up to 24 months.

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How do I replace everything I have lost?

• California law (Insurance Code Section 2071) requires homeowner’s insurers to document customer’s losses and specifically requires an itemized listing of damaged and destroyed property and the value of those items. State Farm’s contract complies with this provision and seeks a listing of all damaged and destroyed property so that an insured is paid for items that were actually lost.

• The requirement to complete an inventory of personal contents has been a part of the California insurance code for quite some time. It ensures that each amount paid to a customer after a loss complies with the terms and conditions of their policy contract.

• For personal contents (the Coverage B portion of your policy), typically, you are paid actual cash value upfront. Then, when you actually replace the damaged personal contents, you will receive the difference as a replacement cost benefit. This assumes the replacements occur within the designated time frame of the contract (up to 24 months)**.

  • ** With a recent change in California law, losses arising from a declared disaster homeowners have up to three years, from the first substantial personal property payment, to replace items per Department of Insurance requirements. This law was effective 09/21/2018. For the 2017 wildfires that occurred in California (e.g. North Bay Tubbs Fire) State Farm's contract allows for items to be replaced up to 2 years from the date of loss

• State Farm regularly reminds customers about the importance of completing a personal contents inventory before disaster strikes. The reason why we emphasize this is we want to pay what we owe and an inventory is a tool for customers to make sure they get the full benefits allowed to them within their policy contract.

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How do I complete a personal contents inventory?

• Claim resources are available to provide a personalized experience with the customers by offering a face-to-face meeting with the customers to assist them with completing their inventory. Customers who do not need a face-to-face meeting can provide their inventory to their claim handler for processing or submit them electronically directly to their claim file 24/7.
• Customers do not have to wait until their entire inventory is completed to submit to their claim. We encourage submitting inventories by rooms to make it easier for our customers to compile.
• Contrary to the myth that State Farm requires accounting for every single spoon and pencil, State Farm recommends grouping items of similar quality/price/age: For Example: clothing-jeans-20 pair/shirts-30/etc, cleaning supplies, food, over the counter medication/kitchen utensils as this can help expedite the process.
• Again, if you need any assistance with the contents inventory process, all you have to do is ask your claim representative for in-person support. We will be there for you for this and all other aspects of your claim.

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Do I get an advance on my personal contents so I can begin replacing items?

• State Farm provides advances to address the immediate needs of our customers.
• The advances are designed to provide you flexibility to begin the recovery process.
• Generally, customers are initially offered the same percentage of an advance based on the circumstances of the event.
• In some cases, advance amounts are increased based on the individual needs/circumstances of the loss.
• We are committed to provide every benefit you are entitled to within the policy contract. This includes payment for items you have lost, up to the policy limits.
• We have Customer Care representatives that are committed to personalizing your claim experience and supporting you throughout the claim process.

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What do I need to do to get 100 percent of contents coverage?

• State Farm is available to support you in completing the contents inventory process.
• We are committed to provide every benefit you are entitled to within the policy contract. This includes payment for items you have lost, up to the policy limits.
• For personal contents (the Coverage B portion of your policy), typically, you are paid actual cash value upfront. Then, when you actually replace the damaged personal contents, you will receive the difference as a replacement cost benefit. This assumes the replacements occur within the designated time frame of the contract (up to 24 months)**.
  • ** With a recent change in California law, losses arising from a declared disaster homeowners have up to three years, from the first substantial personal property payment, to replace items per Department of Insurance requirements. This law was effective 09/21/2018. For the 2017 wildfires that occurred in California (e.g. North Bay Tubbs Fire) State Farm's contract allows for items to be replaced up to 2 years from the date of loss
• It’s critical to understand that insurance coverage is based on the principle of ‘indemnity’ – that is, the insurance contract only provides payment for items you have actually lost, up to the policy limits.
• We are prepared to provide in-person support to work through various aspects of your claim, in particular the contents inventory.

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Do I have enough insurance to cover the value of my home?

• The tragic wildfires are an important reminder to meet with an agent at least annually to review policies and coverage.
• It’s critical to understand that market value​ is different than the replacement cost to rebuild your home. Market value is the amount a buyer would pay for a home, including the land, regardless of how much it would cost to rebuild the home. Replacement cost for this purpose is the rebuilding cost necessary to replace your entire home.
• We recommend that you purchase an amount of coverage at least equal to the estimated replacement cost. But the choice is yours. Since it is impossible to predict today what the exact cost will be to replace your home in the future, it's important to have enough coverage to account for unforeseen circumstances.

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How can I figure out the replacement cost of my home?

• The amount of insurance coverage selected is up to the customer.
• Ask if a replacement cost estimate is available when you have the home appraised or consult with your local builders association or a reputable builder for an estimate.
• Building contractors or professional replacement cost appraisers are a good source for obtaining an estimated replacement cost of your home. Estimates from these sources should reflect your home's features. When you upgrade or improve your home, you may increase your home's estimated replacement cost.
• Be sure to inform your agent about any changes to your home that may impact your insurance coverage needs.
• Replacement cost estimates are influenced by supply of labor, demand for labor, and the cost of construction materials. Keeping up with the current market conditions in your area and changing your home insurance coverage amount accordingly, will help you maintain coverage at least equal to 100 percent of the estimated replacement cost coverage for your home.

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How long does coverage last for a typical insurance policy?  

• An insurance policy is a contract. You pay for coverage for a specified amount of time defined as the policy period (for example six months or a year). The contract protects you for that specified amount of time and for losses you incur under that contract.
• Coverage is not cumulative year to year, meaning your premiums do not add up like a savings account to be used when there is a claim.

[TOP]

Does State Farm have the resources to pay all of these claims?

• Disasters like these are a reminder that our business is highly volatile. Despite that volatility, our long history of financial strength is what allows us to keep the commitments we have made to our customers, helping to remove some of the uncertainty from their lives during times of significant loss.
• We have faced countless significant weather and other major disasters over our 97-year history, and we stand ready for countless more as we help people manage the risks of everyday life, recover from the unexpected, and realize their dreams.

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Will my insurance policy be non-renewed?

• There are several laws in California that address significant losses to homes and homeowners insurance policies. For example, following a declared disaster, California law requires that home insurers renew the impacted homeowners’ insurance policy at least once***.
  • ***With a recent change in California law in 2019, insurers are generally required to renew the policy for at least the next two annual renewal periods, and no less than 24 months from the date of the loss. For the 2017 wildfires that occurred in California (e.g. North Bay Tubbs Fire) State Farm is required to offer one renewal for policyholders that suffered a full loss.
• Many factors are considered when underwriting a homeowner’s insurance policy because each customer’s circumstances are unique. We look at each customer’s situation on a case-by-case basis and try to make sure we treat similar cases fairly and in a consistent manner.
• Losses resulting from weather events or catastrophes are included when re-underwriting a policy for continued insurance coverage. Depending on numerous characteristics that are specific to each policy, State Farm may elect to simply renew the policy, send a caution letter regarding overall claim activity, recommend or require repairs/loss mitigation measures or non-renew the risk.
• Our customers are our top priority, and we want to be able to meet their needs. It is our intent and obligation to fairly and responsibly manage our business, provide the best possible service, and provide homeowners insurance for all of our customers over the long term.

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Will rates go up for my homeowners insurance?

• Rates are determined based on our anticipated need to pay future claims, not to make up for past losses. It is important to note that many factors are considered when underwriting and pricing a homeowners insurance policy because each customer’s circumstances are unique.
• We encourage all of our customers to have a conversation with their agent to make sure they are comfortable with the appropriate coverage for their unique situations, including reviewing discounts available to them that could decrease their premiums.

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I have heard the term "subrogation". What does it mean and how does it affect me as a State Farm customer?

• State Farm’s commitment to our customers is the same for all claims. That commitment is to pay what we owe promptly, courteously, and efficiently.

• After an insurer has paid its customer on a covered claim, it may seek recovery of such claim payments from a legally responsible third party. This process is called subrogation.

• Subrogation is a common insurance industry operations practice and is pursued in a wide range of losses from auto accidents to large scale disasters. This process helps State Farm recover the costs associated with claim payments made to affected customers and may also result in the reimbursement of the customer’s deductible.

• Subrogation helps State Farm control claim costs and keeps rates low for our customers.

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Can State Farm extend my Additional Living Expense coverage benefit beyond the 24 months contractual limit?

• State Farm understands that there are customers facing unique circumstances and situations that are not within their full control. If you have questions about your claim and policy coverage, we would encourage you to reach out to your claim representative. We will work closely with you to address your concerns and see if there is anything more we can do to support you in the recovery process.
  • With a recent change in California law, losses arising from a declared disaster occurring after September 21^st 2018, Additional Living Expense (ALE) is available for no less than 24 months and may be extended to 36 months for good cause. Additional 6 months extensions may also be granted for good cause. For the 2017 wildfires that occurred in California (e.g. North Bay Tubbs Fire) State Farm's contract provides ALE coverage for up to 24 months.

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The media has reported on the affordability and availability of homeowners insurance in California. Can I find homeowners insurance in California and is it affordable?

• It is important to keep in mind that homeowners insurance covers many more causes of loss other than wildfires. (Examples: Weather - storms, fire, and wind. Non-weather – water loss, theft and vandalism.)

• In general, many factors are considered when underwriting a new homeowners insurance policy. State Farm considers factors such as the location of the property relative to natural hazards, condition of the property, and the customer's past claim activity and history.

• To keep our promises to all of our homeowner customers, we must find the appropriate balance between our exposure to loss, the resources available to maintain a quality level of service, and our ability to meet our financial obligations to pay claims for all of our California customers.

• For some helpful resources and more information on insurance availability and affordability, this website may be helpful to you.

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“At State Farm, we are committed to offering customers the highest quality products and services at competitive prices,” said State Farm Senior Vice President Phillip Hawkins. “This homeowners rate reduction in Kansas is a result of improved trends and positions us to deliver on our mission to help more people in more ways.”

The rate decrease is effective August 15 for new business and October 1 for renewals.

Overall changes in premiums for individual homeowners will vary depending on the specific details of an individual customer’s policy and chosen coverages. Customers with questions can contact their local State Farm agent to discuss their individual situation.

In addition to this rate reduction, State Farm agents are able to review with new and existing customers the many opportunities for additional discounts that may apply to an individual’s unique circumstances. A rate decrease combined with discounts offers an exceptional long-term value to State Farm customers.

“At State Farm, we are committed to offering customers the highest quality products and services at competitive prices,” said State Farm Senior Vice President Chris Schell. “This homeowners rate reduction in West Virginia is a result of improved trends and positions us to deliver on our mission to help more people in more ways.”

Overall changes in premiums for individual homeowners will vary depending on the specific details of an individual customer’s policy and chosen coverages. Customers with questions can contact their local State Farm agent to discuss their individual situation.

In addition to this rate reduction, State Farm agents are able to review with new and existing customers the many opportunities for additional discounts that may apply to an individual’s unique circumstances. A rate decrease combined with discounts offers an exceptional long-term value to State Farm customers.

“State Farm Florida is always evaluating how we can best serve our customers. We are very pleased to be able to offer this rate decrease,” said Dan Krause, State Farm Senior Vice-President. “There were several factors supporting the decision to lower rates. Among them were stable, non-catastrophe loss trends and the strength of State Farm Florida."

The rate decrease is effective May 15 for new business and July 1 for renewals.

Overall changes in premiums for individual homeowners will vary. Rates depend on a customer’s policy and chosen coverage. New and existing customers can contact their local State Farm agent to discuss their individual situation. Additional opportunities for discounts may apply.

A rate decrease, combined with discounts, offers exceptional long-term value to State Farm customers.

What are my first steps?

Who is going to help me with my claim?

Does  the State Farm earthquake endorsement provide coverage for debris removal?

Who pays for my living expenses?

How do I replace everything I have lost?

How do I complete a personal contents inventory?

Do I get an advance on my personal contents so I can begin replacing items?

What do I need to do to get 100 percent of contents coverage?

Do I have enough insurance to cover the value of my home?

How can I figure out the replacement cost of my home?

How long does coverage last for a typical insurance policy?

Does State Farm have the resources to pay all of these claims?

Will my insurance policy be non-renewed?

Will rates go up for my homeowners insurance?

I have heard the term "subrogation". What does it mean and how does it affect me as a State Farm customer?

Is damage from an earthquake covered under my State Farm homeowners policy?

• No, damage from an earthquake is not covered under a standard State Farm homeowner insurance policy in Alaska. However, State Farm will pay for any accidental direct physical loss by fire resulting from earth movement, provided the resulting fire loss is itself a loss insured.
• If the risk is eligible, insurance coverage for earthquake damage can be purchased as an endorsement to your State Farm homeowners insurance policy. Customers with questions about the earthquake endorsement can contact their local State Farm agent.

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What are my first steps?

• After a claim has been filed, a State Farm claims specialist will contact you to discuss the extent of damage and review what is covered under your policy.
• If at any time during the claims process, you have questions, do not hesitate to ask your claims specialist. We know this can be a difficult and confusing time. We are here to help you 24 hours a day, 7 days a week.

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Who is going to help me with my claim?

• State Farm is here to support you from the beginning until the very end.
• The claims process can be complex and it is often necessary to involve multiple claim specialists. This approach to enhanced customer service allows State Farm to provide quality and efficient claim service, 24 hours a day and 365 days a year. Our customers should have confidence that State Farm will bring the necessary people resources to handle our customers’ claims.
• State Farm has catastrophe claim teams in the area. Our claims operation includes a dedicated, mobile workforce, specially trained to handle catastrophe claims and prepared to go anywhere in the country within hours of being notified.

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Does the State Farm earthquake endorsement provide coverage for debris removal?

• A State Farm earthquake endorsement may provide coverage, subject to policy terms and limits, to remove debris from the residence premises. We recommend you contact your claim specialist, as they will be able to determine if coverage applies and how much State Farm will pay.
• The choice of who to hire to remove debris from your property is yours. Make sure any removal company is licensed and bonded. Some cities, counties or governmental agencies may offer debris removal in exchange for an agreement that you pay all the money your insurance company pays you for this service.
• State Farm does NOT negotiate debris removal expenses with the county, vendor, or any other entity. It is understood that the county, vendor or other entity is hired by you, our insured, and that they work for you – not State Farm.
• If you receive invoices, estimates or other documentation for debris removal, contact your claim specialist.
• Your claim specialist is available to assist you with any questions you may have and help facilitate the process with you and the other party.

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Who pays for my living expenses?

• If a covered loss occurs and damage is so extensive that your residence is uninhabitable, then Additional Living Expenses (ALE) may be available. Generally, ALE reimburses you for increased living expenses you incur as a result of your home being uninhabitable and is subject to the deductible and the terms and conditions of the policy. ALE is available to you while your home is being repaired or replaced, whichever is shorter.

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How do I replace everything I have lost?

• For personal contents (the Coverage B portion of your policy), typically, you are paid actual cash value upfront. Then, when you actually replace the damaged personal contents, you will receive the difference as a replacement cost benefit. This assumes the replacements occur within the designated time frame of the contract (up to two years).

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How do I complete a personal contents inventory?

• Claim resources are available to provide a personalized experience with customers by offering a face-to-face meeting with the customers to assist them with completing their inventory. Customers who do not need a face-to-face meeting can provide their inventory to their claim handler for processing or submit them electronically directly to their claim file 24/7.
• Customers do not have to wait until their entire inventory is completed to submit to their claim. We encourage submitting inventories by rooms to make it easier for our customers to compile.
• Again, if you need any assistance with the contents inventory process, all you have to do is ask your claim representative for in-person support. We will be there for you for this and all other aspects of your claim.

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Do I get an advance on my personal contents so I can begin replacing items?

• State Farm provides advances to address the immediate needs of our customers.
• The advances are designed to provide you flexibility to begin the recovery process.
• We are committed to provide every benefit you are entitled to within the policy contract. This includes payment for items you have lost, subject to the terms and conditions of the policy, up to the policy limits.
• We have claim representatives that are committed to personalizing your claim experience and supporting you throughout the claim process.

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Do I have enough insurance to cover the value of my home?

• This tragic earthquake is an important reminder to meet with an agent at least annually to review policies and coverage.
• It’s critical to understand that market value ​is different than the replacement cost to rebuild your home. Market value is the amount a buyer would pay for a home, including the land, regardless of how much it would cost to rebuild the home. Replacement cost for this purpose is the rebuilding cost necessary to replace your entire home.
• We recommend that you purchase an amount of coverage at least equal to the estimated replacement cost. But the choice is yours. Since it is impossible to predict today what the exact cost will be to replace your home in the future, it's important to have enough coverage to account for unforeseen circumstances.

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How can I figure out the replacement cost of my home?

• The amount of insurance coverage selected is up to the customer.
• Building contractors or professional replacement cost appraisers are a good source for obtaining an estimated replacement cost of your home. Estimates from these sources should reflect your home's features. When you upgrade or improve your home, you may increase your home's estimated replacement cost.
• Ask if a replacement cost estimate is available when you have the home appraised or consult with your local builders association or a reputable builder for an estimate. If you are unable to obtain a detailed estimate from these sources, a third-party estimating tool is made available to your State Farm agent to assist you with estimating the replacement cost of your home.
• Be sure to inform your agent about any changes to your home that may impact your insurance coverage needs.
• Replacement cost estimates are influenced by supply of labor, demand for labor, and the cost of construction materials. Keeping up with the current market conditions in your area and changing your home insurance coverage amount accordingly, will help you maintain coverage at least equal to 100 percent of the estimated replacement cost coverage for your home.

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How long does coverage last for a typical insurance policy?  

• An insurance policy is a contract. You pay for coverage for a specified amount of time defined as the policy period (for example six months or a year). The contract protects you for that specified amount of time and for losses you incur under that contract.
• Coverage is not cumulative year to year, meaning your premiums do not add up like a savings account to be used when there is a claim.

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Does State Farm have the resources to pay all of these claims?

• Disasters like these are a reminder that our business is highly volatile. Despite that volatility, our long history of financial strength is what allows us to keep the commitments we have made to our customers, helping to remove some of the uncertainty from their lives during times of significant loss.
• We have faced countless significant weather and other major disasters over our 96-year history, and we stand ready for countless more as we help people manage the risks of everyday life, recover from the unexpected, and realize their dreams.

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Will my insurance policy be non-renewed?

• Many factors are considered when underwriting a homeowner’s insurance policy because each customer’s circumstances are unique. We look at each customer’s situation on a case-by-case basis to make sure we treat similar cases fairly and in a consistent manner.
• Losses resulting from weather events or catastrophes may be included when re-underwriting a policy for continued insurance coverage. Depending on numerous characteristics that are specific to each policy, State Farm may elect to simply renew the policy, send a caution letter regarding overall claim activity, recommend or require repairs/loss mitigation measures or non-renew the risk.
• Our customers are our top priority, and we want to be able to meet their needs. It is our intent and obligation to fairly and responsibly manage our business, provide the best possible service, and provide homeowners insurance for all of our customers over the long term.

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Will rates go up for my homeowners insurance?

• Rates are determined based on our anticipated need to pay future claims, not to make up for past losses. It is important to note that many factors are considered when underwriting and pricing a homeowners insurance policy because each customer’s circumstances are unique.
• We encourage all of our customers to have a conversation with their agent to make sure they are comfortable with the appropriate coverage for their unique situations, including reviewing discounts available to them that could decrease their premiums.

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Residents for nearly 30 years, they raised their family in this small city. Now, like so many others, they are rebuilding.

A Warm and Windy Night

Ed and Carol woke up around 1:30 a.m. to the strong smell of smoke and large ash flakes falling like snow. They were prepared and put their emergency evacuation plan into action; leaving just twenty minutes later.

The destruction of their primary home and their four other properties was complete. Their unrecognizable neighborhood and region left thousands of other victims with similar, sometimes worse, fates.

The couple feel fortunate they prepared for a possible emergency evacuation. They grabbed almost all their photo albums, important memorabilia, family heirlooms, and critical documents. They even got their cherished bicycles and Carol's prized handmade quilts. Saving these items from the wrath of the fire provided some comfort and allowed them to proceed with their recovery.

Critical Communication

One of the first things they did was call their State Farm Agent. That initial conversation put them at ease. State Farm had people and resources in place to help them recover.

Educating customers about their insurance coverages and the claims process is a key part of a claim specialist's role. From the beginning, Ed says every conversation with a claim specialist begins with a review of their available insurance coverages.

"Every one of these people told us not to worry," said Ed. "Everyone reviewed with us what our coverage was. This is the first thing that would happen,” he explained. "The bedside manner was very good."

We Are in this Together

The contents inventory process is the part of the claim where customers will document damaged and destroyed personal possessions and replace them. The process can be time consuming and may lead to a great deal of questions.

"We always felt we could call and ask," said Carol. "Every time we called, there was an answer."

Understanding this process and working with the claim specialists helped make their recovery smooth. Nevertheless, it was still an anxiety-filled time. There are many other aspects to an insurance claim besides the inventory process. The couple said trusting the experts reduced the stress and panic that is natural in this type of situation.

Compassion Builds Strength and Hope

Often after a tragedy, communities pull together and people show extraordinary compassion towards one another - and so it was in this situation.

During one of their many conversations with a claim specialist Carol mentioned a book she lost in the fire. It was a rare book about a homesteader from Carol’s hometown.

A couple weeks later, Carol received a package in the mail. Her claim specialist found a copy of the book. Touched by the gesture, Carol said the claim specialist "was so thoughtful. She went above and beyond."

Simple acts of kindness and generosity go a long way. Ed and Carol regularly invite people to their home to share a meal and are available to their friends and neighbors who need help.

The couple has not let the rebuilding process get in the way of enjoying life. Involvement in their church, helping others, and staying connected to friends and family keeps them focused on what is important.

An Important Lesson

Compassion for others and trust in the experts anchors their recovery. Ed and Carol are resilient and have a positive outlook. However, there is one thing they wished they'd done to better prepare.

Their agent had regularly invited them to an insurance and financial review, but Ed and Carol say they never made it a priority.

"If I could go back in time, I would listen to Christine (State Farm Agent) when she would leave those messages on the phone encouraging us to come in and review our policies,” Ed shares. “We ignored those. When you make a mistake, there is a consequence."

You can take all the necessary precautions for life’s scariest moments but without proper insurance coverage, you may not fully recover from a tragedy like a wildfire. Making an insurance and financial review a regular habit can be a critical part of any disaster preparedness plan.

In a moment of levity, Carol shares exactly what her response will be the next time they get a review call from their agent, "Do you have time this afternoon?"

What are my first steps if I have damage?

What can you expect after initially filing a claim?

Does my homeowner's policy cover hurricane damage?

What type of things are not covered by the typical homeowner's policy during a hurricane?

How do you determine what damages my home from the hurricane: flood vs. wind?

What is my hurricane deductible?

How is the hurricane deductible calculated?

Am I covered for tree debris removal?

What else do I need to know about removing downed trees from my property?

Who is going to help me with my claim?

Who clears my property?

Who pays for my living expenses?

How do I replace everything I have lost?

How do I complete a personal contents inventory of my damaged property?

How long does coverage last for a typical insurance policy?

Does State Farm have the resources to pay all of these claims?

Will rates go up for my homeowners insurance?

What are my first steps if I have damage?

• When it is safe to do so, make (or have a contractor make) temporary repairs to prevent further damage to your home or property.
• Save receipts if you purchase items such as tarps, plywood or other supplies to make repairs.
• Take photos/videos of damage for claim documentation.
• To get the claims process started, you can file your claim online, call 1-800-SFCLAIM (800-732-5246) or contact your State Farm agent.

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What can you expect after initially filing a claim?

• After a claim has been filed, a State Farm claims specialist will contact you to discuss the extent of damage and review your policy coverages.
• The complexity and collaboration needed to investigate a claim can sometimes take time, and is necessary for a proper evaluation of your claim.
• If at any time during the claims process, you have questions, do not hesitate to ask your claims specialist. We know this can be a difficult and confusing time. We are here to help you 24 hours a day, seven days a week.

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Does my homeowner’s policy cover hurricane damage?

• Unless the damage is excluded in the policy, a typical homeowners policy provides coverage for accidental direct physical loss to your dwelling and may also provide coverage for personal property damage from a hurricane. Flood damage is not covered.

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What type of things are not covered by the typical homeowners policy during a hurricane?

• Flooding is not covered under homeowners policies. It is a separate coverage that can be purchased through the federal government’s National Flood Insurance Program. State Farm agents enrolled in the NFIP Direct Program are able to write and service flood insurance coverage directly through the federal government program. Homeowners who have flood coverage and have experienced flood damage should report their claim to their flood insurance carrier so that damages can be assessed. To contact NFIP: 1-888-379-9531. 
• Backup Sewer and Drain: If you have water damage, contact your agent for guidance. Damage from water that enters a home through a sewer, drain, or sump pump is excluded from a homeowners’ policy but coverage may be added to your policy for an additional premium. Homeowners should contact their agent for more information.

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How do you determine what damages my home from the hurricane: flood vs wind?

• Policyholders are always encouraged to file a claim should they think they have damage from the hurricane. Coverage and any possible exclusions are then determined during the claims process.

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 What is my hurricane Deductible?

• The insurance industry uses hurricane deductibles to account for increased exposure in areas prone to major storm events such as hurricanes.
• State Farm applies hurricane deductibles when a named storm has been declared by the National Weather Service (NWS).
• We encourage State Farm policyholders to review their insurance policy language for the specific provisions related to hurricane deductibles and contact their State Farm agent if they have questions.
• When does the hurricane deductible apply? Each state differs on when the hurricane deductible will apply. Generally, it will apply when a named storm has been declared by the National Weather Service (NWS). Other conditions apply and are outlined in the policy.

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How is the hurricane deductible calculated?

• Hurricane deductibles vary. If a policy includes one, State Farm policyholders can find it in their policy documents, or they can contact their State Farm agent.

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Am I covered for tree debris removal?

• If a windstorm causes a tree to fall but it does not damage your covered real property (such as your house, fence, carport or garage), the homeowners policy does not cover tree debris removal.
• If a windstorm causes a tree to fall and it damages your covered real property, then coverage is provided to remove the tree from the house, fence, carport or garage to perform repairs to that property. State Farm will also provide up to $500.00 to remove the tree debris from the residence premises. 

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What else do I need to know about removing downed trees from my property?

• When hiring a tree removal company you should make sure they are licensed and bonded.
• Also make sure tarping (if appropriate) is included in their work (or another contractor) so that once the tree is removed from the structure, additional damage does not occur through an open/exposed roof. Water mitigation/removal is the next step to reduce the damage caused by water that may have entered your house through the exposed areas.
• Before signing any contracts, talk with your State Farm claim specialist for guidance following a loss.

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Who is going to help me with my claim?

• The State Farm team is here to help. Our claims operation includes a dedicated, mobile workforce, specially trained to handle catastrophe claims. These teams are prepared to go anywhere in the country within hours of being notified. They provide claim service, 24 hours a day and 365 days a year.

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Who clears my property?

• State Farm homeowners insurance may provide coverage, subject to policy terms and limits, to remove debris from the residence premises. The responsibility to hire someone to clear your land rests with you. We recommend you contact your claim specialist, as they will be able to determine if coverage applies and how much State Farm will pay. Make sure any removal company is licensed and bonded.

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Who pays for my living expenses?

• If covered damage is so extensive that your residence is uninhabitable, then Additional Living Expenses (ALE) may be available. Generally, ALE reimburses you for increased living expenses you incur as a result of your home being uninhabitable and is subject to the deductible and the terms and conditions of the policy. ALE is available to you while your home is uninhabitable and being repaired, replaced or up to 24 months, whichever is shorter, and as otherwise indicated in your specific policy.

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How do I replace everything I have lost?

• For personal contents (the Coverage B portion of your policy), typically, you are initially paid actual cash value (replacement cost minus depreciation). Then, when you actually replace the damaged personal contents, you will receive the difference as a replacement cost benefit. This assumes the replacements occur within the designated time frame of the contract.

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How do I complete a personal contents inventory of my damaged property?

• Your claim specialist is available to assist customers with completing the inventory. Customers who do not need a face-to-face meeting can provide their inventory to their claim handler for processing or submit them electronically directly to their claim file 24/7.
• Customers do not have to wait until their entire inventory is completed to submit to their claim. We encourage submitting inventories by rooms to make it easier for our customers to compile.
• State Farm recommends grouping items of similar quality/price/age: For Example: clothing-jeans-20 pair/shirts-30/etc, cleaning supplies, over-the-counter medication/kitchen utensils as this can help expedite the process. Unusual, specialty or high cost items should be listed individually.
• Again, if you need any assistance with the contents inventory process, all you have to do is ask your claim specialist for help.

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How long does coverage last for a typical insurance policy?  

• An insurance policy is a contract. You pay for coverage for a specified amount of time defined as the policy period (for example six months or a year). The contract protects you for that specified amount of time and for losses you incur under that contract.

• Coverage is not cumulative year to year, meaning your premiums do not add up like a savings account to be used when there is a claim.

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Does State Farm have the resources to pay all of these claims?

• Disasters like these are a reminder that our business is highly volatile. Despite that volatility, our long history of financial strength is what allows us to keep the commitments we have made to our customers, helping to remove some of the uncertainty from their lives during times of loss.

• We have faced countless significant weather and other major disasters over our 95-year history, and we stand ready for more as we help people manage the risks of everyday life, recover from the unexpected, and realize their dreams.

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Will rates go up for my homeowners insurance?

• Rates are determined based on our anticipated need to pay future claims, not to make up for past losses. It is important to note many factors are considered when underwriting and pricing a homeowners insurance policy because each customer’s circumstances are unique.
• We encourage all of our customers to have a conversation with their agent to make sure they are comfortable with the appropriate coverage for their unique situations, including reviewing discounts available to them that could decrease their premiums.

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