Current:Home > BackState Farm has stopped accepting homeowner insurance applications in California-LoTradeCoin
State Farm has stopped accepting homeowner insurance applications in California
View Date:2024-12-23 18:53:57
State Farm has stopped accepting homeowner insurance applications in California, citing the growing risk from catastrophes like wildfires and the rising cost to rebuild.
"State Farm General Insurance Company made this decision due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market," the insurance giant said in a statement on Friday.
"It's necessary to take these actions now to improve the company's financial strength," the company added.
According to the Insurance Information Institute, State Farm was the leading company offering home insurance in California.
The decision to forgo coverage went into effect on Saturday. It applies to both personal and business properties. The company said it will continue to serve existing customers, as well as offer personal auto insurance.
The measure is the latest development in what has been a years-long issue in California: insurance companies dropping homeowners because of the growing risk of wildfires.
In recent years, the state has witnessed some of the most destructive wildfire seasons in its history. In 2018, the Camp Fire destroyed 11,000 homes and at one point, displaced nearly 50,000 people. In its aftermath, insurance companies saw huge losses, causing premiums to go up and toughening eligibility requirements to get covered.
California officials have attempted to minimize such efforts, by temporarily barring insurers from dropping customers in areas hit by wildfires and directing insurance companies to provide discounts.
But as wildfires rage on in the state, so has the issue of insurance affordability and availability. Last year, American International Group notified the state's insurance regulator that it will exit the homeowners market.
veryGood! (5315)
Related
- Anti-abortion advocates press Trump for more restrictions as abortion pill sales spike
- New York City owl Flaco was exposed to pigeon virus and rat poison before death, tests show
- Deadly shootings at bus stops: Are America's buses under siege from gun violence?
- Wisconsin Supreme Court lets ruling stand that declared Amazon drivers to be employees
- Britney Spears reunites with son Jayden, 18, after kids moved in with dad Kevin Federline
- Court says 2 of 4 men charged in Moscow attack admit guilt as suspects show signs of beating
- Tennessee Senate tweaks bill seeking to keep tourism records secret for 10 years
- 'Fallout': Release date, cast, where to watch 'gleefully weird' post-apocalyptic show
- Congress returns to unfinished business and a new Trump era
- Baltimore's Key Bridge collapses after ship hits it; construction crew missing: Live Updates
Ranking
- Utah AD Mark Harlan fined $40,000 for ripping referees and the Big 12 after loss to BYU
- Princess Kate and Prince William are extremely moved by public response to her cancer diagnosis, palace says
- Penguins recover missing Jaromir Jagr bobbleheads, announce distribution plan
- Bruce Springsteen 'literally couldn't sing at all' while dealing with peptic ulcer disease
- Amtrak service disrupted after fire near tracks in New York City
- Georgia lawmakers agree on pay raises in upcoming budget, but must resolve differences by Thursday
- NCAA Tournament Sweet 16 bracket: Everything to know as men's March Madness heats up
- Man stabbed on New York subway train after argument with another passenger about smoking
Recommendation
-
Gigi Hadid and Bradley Cooper Prove They're Going Strong With Twinning Looks on NYC Date
-
Dollar Tree to increase max price in stores to $7, reports higher income shoppers
-
Veteran North Carolina Rep. Wray drops further appeals in primary, losing to challenger
-
Jenn Tran Named Star of The Bachelorette Season 21
-
Contained, extinguished and mopping up: Here’s what some common wildfire terms mean
-
Is Ames Department Stores coming back? Previous online speculation fell flat
-
'Euphoria' Season 3 delayed, HBO says cast can 'pursue other opportunities': Reports
-
NFL pushes back trade deadline one week