State Farm No Longer Accepting Homeowners Insurance Applications in California

As of Sunday, State Farm is no longer accepting new applications for homeowner’s insurance in California, attributing that to the growing risk of climate catastrophes like wildfires and also to spiking construction costs. Marianne Favro reports.

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[dandydoodigery]

No one should be surprised. Several companies have pulled out of that hell hole. The factors that lead to this are:
1. California Insurance Commissioner is one of the worst to work with. They are slow, don’t know what they are doing, and don’t allow for any flexibility in coverage terms.
2. Cost of construction in CA is growing at a rate that is not sustainable.
3. California is an extremely difficult legal justification to operate in.

If you want to blame someone, blame the people you voted into office.

[middleguy]

If this is a surprise you're definitely not paying attention.

[Deerwiener]

State Farm, like a burning house State Farm won’t help

[propblastnd]

The climate is a great excuse for a number of things.

[miamivicefanatic]

Jake from State Farm giving the middle finger to California homeowners.

[alwash]

That ain't the problem they just can't afford to pay all that money out that's why they stopping it

[pablosrz]

Thank you! I hate writing quotes for Californians and they always complain "why is it so expensive?" Because your state sucks.

[ethanol]

Oh sure, it's totally the "wildfires"

[ayocam]

i called my insurance company and they said no longer accepting applications for new customers with certain makes and models.

[laidoffjournalist]

It's not a "climate crisis". California is badly managed. They don't allow forest logging, controlled burns, or logging roads to contain wildfires. California also refuses to re-invest into infrastructure that would improve flashfloods and droughts. The State let too many illegals move in, and they refuse to take a hard stand against crime and drug use.

[cynthiacler]

A lot of insurance companies are not even accepting new client's for ANY of their policy's. I just called my car insurance company to inquire about a new policy and they said NOPE. They have stopped writing new policy's for home, auto a d business. This shouldn't be a huge shock and sure there are companies that will write a new policy but the pri e is gonna be $$$.😮

[BCSchmerker]

+NBCBayAreaNews *Thanks for the heads up on a major insurer denying new home insurance policies.* Farmers Insurance Group still services new home policies.

[thomaslecour]

Like a good neighbor, State Farm is there except California

[timedj]

Jake from state farm: we would like a word!

[deluxe]

The woman said they lost all the underwriting profit from the last 20 years. ( not including 24 million ceo pay 2022)

[wwremembered]

So much for " Like a good neighbor, State Farm is there! ". Guess this is their version of Welcome Wagon?

[mwatercress]

Insurance companies don't want exposure to the state. Tech companies are leaving. Landlords are trying to exit the state. And we are starting to see more wealthy people leave the state contributing to our tax revenue shortfalls. And the big city mayors like Todd Gloria from San Diego say that they need more funding for homelessness because they aren't able to keep pace with the new people becoming homeless in California every day. The median income doesn't buy the median-priced home. Nonprofit affordable housing units cost $450, 000-$990, 000 per unit to build. It's almost like an economy built on mandates, price controls, and strict regulations can have some negative unintended consequences. When a vagrant lights your home on fire whose insurance covers that? California government has spent years using its market power to mandate changes that influence markets in other states. If companies are leaving your market, you're just hurting consumers in your market. You're not a shining example, you're a cautionary tale.

[pree]

State farm please take your commercials with you.

[adamwalsh]

I left California also....and it's been

[commonsense]

Good. Pergaps my auto insurance will go down now.