Homeowners Insurance Los Angeles

Insurance Commissioner John Garamendi Thursday accused State Farm Mutual Automobile Insurance Co., California's largest homeowners insurer, of redlining, or illegal sales discrimination, in inner-city neighborhoods of Los Angeles. Based on a new study of 1992 homeowners insurance sales in selected ZIP codes, Garamendi said the company "writes virtually no policies in South-Central and East Los Angeles" because it refuses to compete in poorer neighborhoods.

Insurance Commissioner John Garamendi Thursday accused State Farm Mutual Automobile Insurance Co., California's largest homeowners insurer, of redlining, or illegal sales discrimination, in inner-city neighborhoods of Los Angeles. Based on a new study of 1992 homeowners insurance sales in selected ZIP codes, Garamendi said the company "writes virtually no policies in South-Central and East Los Angeles" because it refuses to compete in poorer neighborhoods.