County Supervisor & Residents Angry Insurers Are Pulling Policies From San Diego

News Date

Supervisor Terra Lawson-Remer has been hearing from residents  who are angry that State Farm and other insurance agencies will no longer offer renters and homeowner insurance  to them starting in July 2024. One of Supervisor Lawson-Remer’s own staff members is also a victim of this effort by the insurance agencies to punish homeowners in order to leverage their negotiations with the State of California, as the state works to modernize regulations by the end of this year.

During a press conference today at the County Administration Center, the Supervisor, who represents Coronado to Carlsbad, was joined by representatives of United Policyholders, AARP California and some  homeowners, renters and business owners who expressed disappointment, anger and fear because of the actions insurers are taking toward residents and businesses.

“Severing ties with homeowners and renters in San Diego County is not very neighborly of State Farm, or any other insurance provider,” said Supervisor Lawson-Remer, Vice Chair of the Board of Supervisors. “The state is working in good-faith to address insurance provider concerns, but instead of being a good neighbor, they are jeopardizing people’s lives and belongings to prove a point, it’s reckless.

“I’ve heard from realtors, homeowners, builders and renters about these insurance companies, and even one of my team members was denied renters’ insurance by State Farm. Our ability locally to affect change on this issue is limited, but I want San Diegans to know that we are standing up to corporate bullies, and will be doing anything we can to support the State with its regulations.”      

If passed on Tuesday, the resolution by the County of San Diego Board of Supervisors will be

  • Opposing State Farm and other large insurance companies' decision to abandon homeowners, renters, and small business owners and instead work together with the State Insurance Commissioner in modernizing the insurance marketplace to ensure long-term availability, affordability, and sustainability of coverage, and  

  • Calling for State Insurance Commissioner Commissioner Lara to ensure transparency and accountability in the rate-setting process, so that homeowners are getting a fair deal and protected from paying exorbitant rates.  

On March 20, 2024, State Farm announced that it would be dropping coverage for existing policyholders, leaving 72,000 homeowners and rental property owners scrambling to find alternatives. Neighborhoods affected include: Rancho Sante Fe, Vista, Lakeside, El Cajon, Encinitas, Normal Heights, Tierrasanta, Jamul, Ramona, and Carmel Valley. 

“As a community that has been impacted by past wildfires, this region is getting extra hard hit by the current home insurance crisis.  Home insurance is not a luxury - it's a necessity, and it's imperative that we protect households from being arbitrarily dropped or overcharged simply because of the zip code they live in,” said Deputy Executive Director Valerie Brown who lives in San Diego. “San Diegans are hardening their homes and creating defensible space at a rapid clip and they deserve insurance rewards. United Policyholders is helping people navigate this crisis and keep their homes insured as best we can, and we commend lawmakers for advancing solutions. For more info, visit”

It is no secret insurance companies have raised concerns that the California insurance marketplace is broken given wildfire and climate risks, high inflation and construction costs, rising reinsurance rates, and a slow process for rate approvals. Earlier this year, the State Insurance Commissioner Ricardo Lara started working on revised regulations, and expected them to be completed by the end of 2024. Governor Newsom added further urgency on May 10, pushing to stabilize the insurance market with expedited rate approvals that could take effect by July 1.  Some consumer watchdog groups contend that insurance companies are using policy cancellations as leverage to secure friendlier state regulations.  

 Link to Policy / Link to Resolution