California Home Insurance Industry in Crisis as Allstate and State Farm Accused of Extortion

Allstate and State Farm, two of California's largest home insurance providers, have stopped issuing new home insurance policies, citing climate change and inflation as reasons. Consumer Watchdog has accused the companies of extortion, claiming that they are not losing money and that their profits in California on homeowners insurance are four times the national average. The group's founder, Harvey Rosenfield, has called on California Insurance Commissioner Ricardo Lara to force the companies to resume selling homeowner insurance policies or risk being banned from selling all other forms of insurance in California.