Will the new State Farm plan benefit California homeowners?

State Farm customers, who initially believed they would be dropped by the insurance company, now have a new option for insurance in California.

However, Megan Goldsby reported it still doesn’t help with fire insurance.

Amy Bach, executive director of United Policyholders, said the new State Farm plan is something other insurance companies have already been doing.

“It is what’s called a difference in conditions. It’s really, that’s a fancy word for an add-on. So it’s a limited coverage policy,” she said.

This means the policy will cover damage to your home unless it’s caused by a fire. Homeowners in California will still have to join the state’s FAIR plan that was created specifically for fire coverage.

“For a lot of households, it’s not an affordable option, but if you can afford it, it’s a really good way to be protected,” Bach said.

State Farm announced in March they weren’t going to renew home insurance policies for 72,000 houses and apartments in California.