State Farm Pulls Super Bowl Commercial After Receiving Backlash Over Cancelling California Home Insurance

State Farm Insurance is finding out that actions and policies have consequences, whether right or wrong.

The popular home insurance company announced earlier today that it has pulled its Super Bowl commercial after receiving criticism from California homeowners and residents about the company's recent change in insurance policies. Last year, State Farm withdrew more than 70,000 insurance policies for homeowners and businesses due to wildfire and other concerns. 

"Our focus is firmly on providing support to the people of Los Angeles. We will not be advertising during the game as originally planned," the company said in the statement, as well as revealing that it has already "received over 7,400 home and auto claims," due to the devastating wildfires and is planning on issuing tens of millions of dollars to those who were affected. The company said that it expects the number of claims to rise in the coming days and weeks ahead.

WHY STATE FARM DROPPED POLICIES IN CALIFORNIA 

Last March, State Farm announced that it would be dropping approximately 30,000 property insurance and 42,000 commercial apartment policies, due to what the company said was a result of "inflation, catastrophe exposure, reinsurance costs, and the limitations of working within decades-old insurance regulations." It added that the current "financial solvency laws" have also made things difficult.

The timing, of course, does not look great from an optics standpoint, as months later Los Angeles County has suffered one of its worst wildfires of all time.

With thousands of homes completely destroyed and emotions running high, many are looking to place the blame on something or someone for the devastating wildfires that have been burning for more than a week now. 

PEOPLE ARE LOOKING TO BLAME SOMEONE 

California Governor Gavin Newsom and Los Angeles Mayor Karen Bass have faced the most criticism, as both Democrats and Republicans have ripped them for not being adequately prepared for last week's fires. (And rightfully so!)

However, some people, such as comedian Bill Burr, have said that they don't want to focus on the political faults of what happened, but rather place blame on the insurance companies. Burr made his comments while appearing on Jimmy Kimmel's show last night. He also mocked those who are criticizing California's politicians' mishandling of the whole situation. 

STATE FARM IS NOW CHANGING ITS POLICY

Whether it was in response to the criticism it was facing, or perhaps the company decided to do what it believed could help those affected by the wildfires, State Farm has now decided to change its initial plans to pull even more insurance claims this year and is offering renewals to homes that were previously going to be cut, in addition to pulling its Super Bowl commercial. (Super Bowl commercials cost $7 million for 30 seconds.) 

Honestly, good for State Farm for actually realizing the optics of what is happening right now. Unlike Governor Newsom, Mayor Bass and many of our political leaders who never take any accountability, as California's most popular insurance company, State Farm realizes that it had to try to make things right - even though, to be fair, it didn't have to. 

"State Farm will now offer renewals to residential policyholders impacted by the fires that were previously going to be dropped," the insurance company announced. It's unclear if other insurance companies will do the same.