Largest Home Insurer in US Won’t Accept New Applications for Home or Business Insurance in California
After years of California wildfires, State Farm Insurance says it has been burned once too often.
On Friday, the company announced in a release on its website that as of Saturday, it would no longer accept new applications for homeowners insurance in California.
“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 release said.
CNN noted over the past five years, California had had an average of more than 7,000 wildfires a year, burning an average of more than 2 million acres.
Further, according to CalMatters, citing California Association of Realtors data, said that the median price of a single-family home rose 44 percent, from $626,170 to $900,170 between June 2020 and May 2022.
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