State Farm stops insuring California homes

State Farm is no longer accepting new applications to insure homes and properties in California, saying wildfire and construction costs are behind the move. Lawyer with Consumer Watchdog Harvey Rosenfield discusses the decision.

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[Drewzker]

Bad... no one is going to build a new house if you can't insure it.

[sprocket]

This guy is unreal. Just say you effed up dude. No company, that exists only to make money, leaves a market or state...unless there's none to be made there.

[edwardm]

Insurance companies stopped selling hurricane insurance in Florida. Its a loss market. Same for California wild fires. Voters may have voted for your proposition 103 but thats on them, not for a corporation that answers to shareholders not voters.

[Maildalej]

Insurance is a commodity. To have the government regulate it harms competition. CA has now lost 2 big insurers. To double down and say the state needs MORE government intervention is laughable.

[davidmckinley]

They are not the only ones in CA. Many carriers have made stricter underwriting guidelines so that it makes it impossible to write a policy. Other companies have terminated the contracts of many agents and are non-renewing policies.

[Robrob]

Good for State farm honestly. It doesn't make business sense to be in California. Other companies can take his seat if they want but they wont

[Mr_Banker]

Seems like they're preparing for something huge!? Fires incoming this year?

[hamradiotimes]

I guess they spent all that money on stupid tv commercials, California in shambles again…..

[jmvillegasjr]

What'll end up happening, is, they'll create a state sponsered insurance program (with regulations that the industry needs) where the big profits (private companies usually make) will be put into a surplus account. Insurance companies make huge profits. A state surplus account will kore than be enough to cover any losses.
Ive worked in the insurance industry, most of my life, and what I've seen, P&C companies (homeowners, auto, watercrafts and RV) are the stringiest.
When Reagan deregulated the insurance industry, all hell broke loose.

[coreylee]

Capitalism, if there is no money to be made close up shop. if the retail theft does not stop retail will lose its insurance too.