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California residents no longer able to apply for homeowners insurance from State Farm

State Farm to stop accepting homeowners insurance applications in California

State Farm to stop accepting homeowners insurance applications in California

State Farm, one of the largest homeowners insurance providers in the US, has announced that it will stop accepting new applications for homeowners insurance in California. The company cited the “rapidly growing” risks of catastrophes like wildfires, “historic increases” in construction costs and a challenging reinsurance market. The new policy will not impact personal auto insurance. State Farm’s independent contractor agents will continue to serve existing customers.

“We take seriously our responsibility to manage risk”, said the company in a press release. “We will continue to evaluate our approach based on changing market conditions.” State Farm said it will work with the California Department of Insurance and other policymakers to address these challenges and improve conditions in California.

The impacts of this decision on Californians looking for homeowners insurance are unclear, but the move highlights the growing risks associated with catastrophic events like wildfires. State Farm’s announcement comes as California is currently experiencing some of the largest wildfires in its history.

Frequently Asked Questions:

Q: Will State Farm stop providing homeowners insurance to existing customers in California?
A: No, State Farm has only announced that it will stop accepting new applications for homeowners insurance. Current customers will not be impacted by this policy change.

Q: Will current homeowners with State Farm see a rate increase in California?
A: It is unclear if State Farm will increase rates for existing customers in California. However, the company has stated that it will work with policymakers to address the challenges posed by catastrophic events in the state.

Q: Are other insurers also considering stopping new applications for homeowners insurance in California?
A: It is unknown if other insurers are considering a policy change similar to State Farm’s. However, the risks posed by catastrophic events like wildfires have been increasing, which could impact insurers’ willingness to provide coverage.

State Farm to stop accepting homeowners insurance applications in California
State Farm to stop accepting homeowners insurance applications in California

Homeowners Insurance Applications to No Longer be Accepted by State Farm in California

State Farm General Insurance Company has announced its decision to stop accepting new homeowners insurance applications in California from Saturday. The company cites “rapidly growing” catastrophe risks, ‘historic increases’ in construction costs, and a challenging reinsurance market among the reasons for the move. The decision will not affect personal auto insurance, and independent contractor agents will continue to service existing customers. While State Farm will work with the California Department of Insurance and other policymakers to improve conditions, it has decided to take action to improve its “financial strength.” The company said it will continue to evaluate its approach based on changing market conditions.

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