State Farm, the largest home insurer in California, has announced that it will no longer write new home and business insurance policies in the state. The decision comes amid a growing number of wildfires and other natural disasters, which have made it increasingly expensive for insurers to cover properties in California.
In a statement, State Farm said that the decision was “necessary to improve the company’s financial strength.” The company said that it will continue to serve its existing customers in California, but that it will no longer accept new applications for home or business insurance.
State Farm’s decision is the latest sign of the challenges facing insurers in California. The state has been hit by a series of devastating wildfires in recent years, and the cost of rebuilding homes and businesses has skyrocketed. As a result, insurers have been forced to raise rates or drop coverage altogether.
If you are a homeowner or business owner in California, you should contact your insurance company to find out if your coverage is affected by State Farm’s decision. You should also start shopping around for new insurance quotes.
The State Farm decision is a reminder of the risks of living in California. The state is prone to a variety of natural disasters, and the cost of rebuilding can be high. If you are considering moving to California, you should carefully consider the insurance options available to you.
