State Farm Insurance has reversed its decision and will continue honoring some homeowners’ policies. But that coverage is conditional. State Farm will not cover fire damage and if a homeowner wants to keep their policy, they would need to buy fire coverage through the state’s FAIR plan.
The FAIR plan provides coverage for homes that are at risk of wildfires. In March, State Farm announced it would not renew about 30-thousand homeowners’ policies. State Farm is the largest provider of homeowners’ insurance in California.