Insurer Pulls Out Of California Due To Rising Claims
Rising toxic mold claims have left their mark on yet another state as State Farm -- the largest insurer in California -- has decided it would no longer write new policies in the state starting May 1. With 1.5 million home policyholders in California, State Farm represents 22 percent of the state's market.
Insurers in California have been battling recently passed state legislation that would require insurers to keep a standard level of mold coverage and forbid restrictions. While most insurers in the state cover mold damage if it is a result of sudden or accidental water damage, many refuse to cover mold claims if it is a matter of faulty maintenance by the homeowner.