State Farm ceasing new applications in California for property insurance, other policies

nikholas

The State Farm General Insurance Company will no longer accept new applications for property insurance and other policies in California, citing “historic” increases in construction costs and inflation,” the company said Friday. 

Beginning Saturday, the Illinois-based insurance group will cease to accept applications for business and personal lines property and casualty insurance. The move doesn’t impact personal vehicle insurance. 

REPUBLICANS PROVE BIDEN ADMIN’S CLIMATE OVERREACH INTO CONSUMER 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 release. “The Department of Insurance is focused on the safety of our homes and communities.”

state farm insurance

State Farm Insurance retail office. The company said it will no longer accept new applications for certain coverage in California, citing high costs.  (John Greim/LightRocket via Getty Images / Getty Images)

The insurance company said actions are necessary to improve its financial strength. State Farm agents in California will continue to serve existing customers, it said. 

A spokesperson for the California Department of Insurance told Fox Business it is committed to protecting customers.

“The factors driving State Farm’s decision are beyond our control, including climate change, reinsurance costs affecting the entire insurance industry, and global inflation,” the spokesperson said. 

California has some of the most expensive housing costs in the nation amid a shortage that many say has exacerbated the homeless crisis up and down the state. The state plans to spend about $30 million to build 1,200 small homes.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

In February, State Farm halted new coverage for some Kia, Hyundai drivers in several states because the vehicles were vulnerable to theft, it said. 

Next Post

Marvell shares soar 32% after semiconductor firm beats on earnings

Matt Murphy, CEO, Marvell Technology Scott Mlyn | CNBC Shares of Marvell Technology continued a significant overnight rally Friday, surging about 32% off the back of quarterly earnings results that beat on the top and bottom lines. On Thursday, the chipmaker posted 31 cents in adjusted earnings per share for […]
Marvell shares soar 32% after semiconductor firm beats on earnings