California Blames ‘Climate Change’ For Insurer’s Decision To Stop Covering New Homes
by Laurel Duggan Mar 27, 2024 in Extreme Weather, News
State Farm will no longer take new homeowner insurance applications in California, a move the state government is blaming on climate change.
The insurance company cited the high cost of construction in the state and the growing threat of catastrophes including wildfires in its Friday announcement. The California Department of Insurance (CDI) told Axios that climate change was driving the issue, making it beyond the state’s control. [emphasis, links added]
“The factors driving State Farm’s decision are beyond our control, including climate change, reinsurance costs affecting the entire insurance industry, and global inflation,” CDI spokesperson Michael Soller told the outlet. “We have been here before after major wildfires. What’s different is the actions that we are taking with the first-ever insurance discount program for wildfire safety and unprecedented wildfire mitigation investments from the Legislature and Governor.”
The cost of building multifamily homes in California rose 25% per square foot from 2010 to 2020 after adjusting for inflation, according to the Terner Center for Housing Innovation, and wildfires continue to pose a major risk to homes in the state.
https://climatechangedispatch.com/california-blames-climate-change-for-insurers-decision-to-stop-covering-new-homes/
