Allstate and State Farm halt new home insurance policies in California due to wildfire risks.

Allstate has stopped issuing new home or property insurance policies in California due to the state's wildfire risk, higher costs for repairing homes, and higher reinsurance premiums. State Farm made a similar announcement last month. California Insurance Commissioner Ricardo Lara submitted new insurance pricing regulations requiring insurance companies to provide discounts to consumers and other certain protections, which insurers say make things more challenging to quickly adjust prices in instances of high inflation.