State Farm will no longer accept new applications in California for property insurance due to wildfires, inflation and historic construction costs.
Wildfires = Poor forest management thanks to Democrat policies.
Inflation = Thanks to trillions in spending by Joe Biden and the Democrats in Congress.
The new policy will not impact vehicles.
Existing California customers will still be serviced.
“State Farm General Insurance Company®, State Farm’s provider of homeowners insurance in California, will cease accepting new applications including all business and personal lines property and casualty insurance, effective May 27, 2023. This decision does not impact personal auto 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 press release.
The insurance giant said it had stop insuring California properties for financial reasons.
“We take seriously our responsibility to manage risk. We recognize the Governor’s administration, legislators, and the California Department of Insurance (CDI) for their wildfire loss mitigation efforts. We pledge to work constructively with the CDI and policymakers to help build market capacity in California. However, it’s necessary to take these actions now to improve the company’s financial strength. We will continue to evaluate our approach based on changing market conditions. State Farm® independent contractor agents licensed and authorized in California will continue to serve existing customers for these products and new customers for products not impacted by this decision.” State Farm said.
Last May a massive brushfire destroyed more than 20 homes in the coastal city of Laguna Niguel in Southern California.
— michele gile (@michelegiletv) May 12, 2022
200 acres burned and 20 homes were destroyed.
SoCal Edison said there was “circuit activity” around the time of the fire.
In 2021, California’s ‘Dixie Fire’ became the second largest in the state’s history.
The fire began on July 14, 2021 just northeast of Chico, California and grew to more than 460,000 acres.
Democrat Governor Gavin Newsom blamed climate change and poor forest management (thanks to Democrat policies) for the Dixie Fire.