Board Of Supervisors Pass Resolution Calling State Farm A Bad Neighbor For San Diegans

News Date

Supervisor Terra Lawson-Remer, and the San Diego County Board of Supervisors today called State Farm and other insurance providers who pull insurance coverage a ‘bad neighbor” with a resolution they passed 5-0.

“We stood up to insurance companies for San Diegans today by passing this resolution,” said Supervisor Lawson-Remer, Vice Chair of the Board of Supervisors. “I will continue to fight for residents, renters and business owners and am ready to support the State Insurance Commissioner in any way possible as he works to modernize the regulations.”

The resolution passed by the County of San Diego Board of Supervisors: 1.) Oppose 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 2.) 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 Santa Fe, Vista, Lakeside, El Cajon, Encinitas, Normal Heights, Tierrasanta, Jamul, Ramona, and Carmel Valley. 

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