State Farm Pulls Out of California Home Insurance Market

Beginning on Saturday, State Farm will stop selling home and property insurance to new clients in California, the firm announced in a news release.

The decision was made by the insurance firm, which specifically mentioned the risk posed by the state’s periodic wildfires. The insurance company cited “historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market” as justification.

“We take seriously our responsibility to manage risk,” State Farm said. “We recognize the Governor’s administration, legislators, and the California Department of Insurance (CDI) for their wildfire loss mitigation efforts.

Bill McKibben posted a tweet related to the news:

“However, it’s necessary to take these actions now to improve the company’s financial strength,” it added.

If you want to learn more about what’s been going on in California recently, keep reading:

According to State Farm, there would be no change in the way it provides personal auto insurance to its current clients in the state.

2022 was a “quiet year,” according to Cal Fire, with 7,490 wildfires burning more than 360,000 acres in California.

More than 2.5 million acres of the state were destroyed by wildfires the previous year.

You may get additional information and the most recent news by following the California Examiner’s Twitter feed.

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