Insurance giant State Farm to stop insuring new homes in California, citing catastrophic wildfires and rapidly rising inflation costs that have put polices at a premium ⋆ The Savage Nation
America’s biggest home insurance company has announced it will no longer insure houses in California, saying that the risk from wildfires was too great and the cost of rebuilding too high.
State Farm, the nation’s biggest car and home insurer by premium volume, said existing customers would not be affected.
But from Saturday, no new home insurance policies will be issued. The company will continue offering auto insurance.
State Farm said it ‘made this decision due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market.’
In its statement, State Farm said it takes ‘seriously our responsibility to manage risk.’