State Farm has stopped accepting new applications for homeowners insurance in California due to the risk of damage done by natural catastrophes like wildfires and high construction costs. The decision won’t impact current customers, but as of Saturday, no new applicants from the state will be approved. In a statement, the insurance company said the decision was made “due to historic increases in construction costs outpacing inflation,rapidly growing catastrophe exposure, and a challenging reinsurance market.” State Farm also vowed to “work constructively” with the California Department of Insurance and policymakers “to help build market capacity in California.”
–Jim Starr (thank you Jim for this heads up!)