But Karl Susman, an independent broker and industry expert based in Los Angeles, said those who will be dropped are almost certainly properties in and around wildland areas considered at greater risk of wildfires, where standard coverage has become nearly impossible to get.

“You get rid of the worst risks,” Susman said.

Property owners who lose their coverage almost certainly will be left with no option but the California FAIR Plan, Susman said. The state-created private insurance pool provides minimal last-resort coverage that can cost much more than a standard policy.

Dependence on the FAIR plan has soared as many of California’s largest home insurers began limiting coverage in recent years after a series of destructive wildfires that followed a prolonged drought — 14 of the state’s 20 most destructive wildfires on record occurred in the last 10 years.

The number of FAIR Plan policies has more than doubled in five years, from 154,494 in September 2019 to 339,044 in December 2023. Total liability exposure topped $311 billion in 2023 compared to $112 billion in 2019.

State Farm said non-renewals would roll out starting July 3 for home, business and rental dwelling policies and Aug. 20 for commercial apartments.

Soller said those notified they will lose coverage should call the insurance department at 800-927-4357 or use its insurance.ca.gov website to get help finding new coverage. He said the department “is on track for enacting the state’s largest insurance reform in over 30 years by our December 2024 target date.”

“Changes to outdated regulations will improve choices for all Californians so everyone has options beyond the FAIR Plan,” Soller said.

But that might not come soon enough for State Farm’s cancelled customers.

Susman said the department should just put out all its proposed changes at once, rather than dribbling them out over the course of the year. Consumers are suffering now and it will take time for any regulatory changes to provide improved coverage options, he said.

Soller said “we are moving quickly to implement them while respecting the strong public review and transparency principles of California law.”

Rosenfield, who has defended the state’s regulatory framework and criticized the commissioner’s office as overly deferential to the industry, said “the insurance commissioner has given the industry everything it wants and they’re still not satisfied.”

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