State Farm No Longer Taking New CA Fire Insurance Applications
Sacramento, CA — Citing wildfire concerns and the rising cost of construction, a major insurance company has stopped accepting new fire insurance applications in California.
State Farm says in a statement that the change in course is “due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market.”
The new stance took effect on Saturday and includes both residential and commercial buildings. It only impacts new customers and not existing policies.
The insurance company stresses that it is still issuing new auto insurance policies in the state.
State Farm argues that the decision is needed to improve the company’s financial strength, and notes that it will be reassessed in the years ahead.
