Farmers Insurance has announced that it will limit new homeowner insurance policies in California due to rising inflation and increased costs from severe weather events. The decision, effective July 3, is aimed at managing the company's business while serving existing customers. This follows similar moves by Allstate and State Farm in June, who also restricted their insurance offerings in the state. The limitations come after California Insurance Commissioner Ricardo Lara implemented new insurance protections, including increased payouts and benefits for wildfire survivors, to reduce costs and enhance transparency.
State Farm has stopped accepting applications for homeowner insurance in California due to the destructive wildfires and exorbitant construction costs in the state. Existing customers won’t be affected by the moratorium, but the cutoff for new applicants began Saturday. The decision has massive implications in the insurance industry, which has been bled dry by the unrelenting blazes and their frequency, leading to a spike in the price of premiums.
State Farm Insurance has stopped offering new home insurance policies in California due to rising wildfire risks and construction costs. The decision was made to improve the company's financial strength and does not affect those already with homeowners insurance policies. California has seen more frequent and intense wildfires, and experts warn that this season's wildfire activity could be especially extreme. Insurance companies have been cutting back on their homeowner policies in the state due to losses caused by wildfires. California's insurance commissioner has imposed a mandatory one-year moratorium on insurance companies canceling or refusing to renew certain residential insurance policies after a state of emergency is declared due to a wildfire disaster.
State Farm has stopped accepting homeowner insurance applications in California due to the growing risk from catastrophes like wildfires and the rising cost to rebuild. The decision went into effect on Saturday and applies to both personal and business properties. State Farm was the leading company offering home insurance in California. The company said it will continue to serve existing customers, as well as offer personal auto insurance.
