California Homeowners Face Insurance Limitations and Wildfire Risks
Farmers Insurance has become the third major insurance company to limit homeowner policies in California, following similar moves by Allstate and State Farm. The company cited rising inflation, severe weather events, and increasing reconstruction costs as reasons for the policy limitations. Farmers Insurance will now only write new homeowners insurance policies in California up to a level consistent with their projected monthly volume before recent market changes. While more than 100 insurance companies are still operating in the state, consumer advocates suggest that smaller companies may be able to provide assistance. California Insurance Commissioner Ricardo Lara stated that his department does not have the authority to reverse the decisions of these companies and will instead focus on protecting consumers and ensuring coverage.