“Like a good neighbor, State Farm is there” unless you live in the woke state of California.
State Farm’s general counsel has announced they will not accept anymore more applications from any residents in California.
The move by the insurance company has been decided due to the state becoming a rapidly growing risk zone for wildfires and rising construction costs.
Residents of California who already have State Farm will be able to keep their coverage.
REPORT: State Farm stops offering home, property insurance in California; Decision does not impact existing customers.
— Election Wizard (@ElectionWiz) May 27, 2023
State Farm says it’s stopping the sale of new home insurance policies in CA due to factors beyond control like climate change
CA wildfires are caused by the neglect of those running the state not climate change
They haven’t built any kind of water containment facility for 40 yrs pic.twitter.com/YrTn45m9pD— Ronald Kelly (@RonK3l) May 27, 2023
Per NBC News:
State Farm General Insurance Company on Friday announced that it will stop accepting new homeowners insurance applications in California, citing “rapidly growing” catastrophe risks like wildfires, “historic increases” in construction costs and a challenging reinsurance market.
“We take seriously our responsibility to manage risk,” the company said in a release.
State Farm said it will stop accepting new business, personal lines property and casualty insurance applications starting Saturday. The new policy will not impact personal auto insurance, according to the release. State Farm’s independent contractor agents will also continue to serve existing customers.
The company said it will work with the California Department of Insurance and other policymakers to improve conditions in California, but that State Farm decided to take action to improve its “financial strength.
“We will continue to evaluate our approach based on changing market conditions,” State Farm said.
State Farm has announced that it will not be selling any new home insurance policies in California. pic.twitter.com/6FNyWYmJpW
— TODAY (@TODAYshow) May 27, 2023
Fox Business had more details to add:
The State Farm General Insurance Company will no longer accept new applications for property insurance and other policies in California, citing “historic” increases in construction costs and inflation,” the company said Friday.
Beginning Saturday, the Illinois-based insurance group will cease to accept applications for business and personal lines property and casualty insurance. The move doesn’t impact personal vehicle insurance.
“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 company said in a release. “The Department of Insurance is focused on the safety of our homes and communities.”
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