State Farm is no longer accepting property insurance applications in California

Insurance giant State Farm is no longer accepting new applications for business or personal property coverage in California. “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.” Automobile insurance is not affected by the change, which took effect Saturday. “The factors driving State Farm’s decision are beyond our control, including climate change, reinsurance costs affecting the entire insurance industry and global inflation.” Last year, California became the first state to require insurance premium discounts for owners who implement wildfire protection safeguards at homes or businesses. While State Farm pledged to “work constructively” with California policymakers and regulators, the change is necessary to “improve the company’s financial strength,” the statement said.