Legal Insurrection by Leslie Eastman Wednesday May 31, 2023
State Farm blames wildfires and inflation. The California Department of Insurance is blaming…climate change.As another glorious day dawns in California, another business entity gives up on the state.
For years, California has failed to develop and maintain its water infrastructure. It also allowed eco-activists to impose policies prohibiting brush-clearing. Decisions like these have consequences.
One of the largest insurance agencies in the country will no longer accept applications for home and business insurance in California due to wildfire risks and the cost of rebuilding.
State Farm has ceased new applications, including all business and personal lines property and casualty insurance, starting Saturday, the company announced in a press release.
Existing customers will not be affected, and the company will continue to offer auto insurance in the state, according to the release.
Construction costs in California have also escalated. This is a contributing factor to State Farm’s decision.
“State Farm General Insurance Company made this decision due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market,” the insurance giant said in a statement on Friday.
“It’s necessary to take these actions now to improve the company’s financial strength,” the company added.
According to the Insurance Information Institute, State Farm was the leading company offering home insurance in California.
More:
https://legalinsurrection.com/2023/05/state-farm-no-longer-accepting-applications-for-homeowners-insurance-in-california/