As of Saturday, State Farm is no longer accepting new applications for homeowners insurance in California due to growing risks of things like wildfires and spiking building costs.
“With the five years of intense wildfires and losses that we’ve had, we pretty much lost all our underwriting profit that we had from the last 20 years,” said Janet Ruiz of the Insurance Information Institute. Sign up for NBC Bay Area’s Housing Deconstructed newsletter.
Ruiz argued part of the issue is California’s Proposition 103, which forces insurance companies to require prior approval from the state’s insurance department before implementing rates. Some analysts say this has kept rates in California artificially low. While the law keeps rates down, the insurance industry argues it also put homeowners at risk of fleeing providers.
While State Farm is no longer accepting new home insurance applications, William E. Chea, president of the Santa Clara County Association of Realtors, wants to remind homebuyers that there are still other options. “Obviously, it’s not a great thing they decided to do this,” said Chea. “But we are counseling new buyers and letting them know that there are companies still willing to insure them.”This article tagged under:
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
State Farm Halts Home-Insurance Sales in CaliforniaThe move by one of California’s biggest insurers is a blow to the state’s efforts for years to maintain a vibrant market for homeowners in the wildfire-prone state.
Read more »
State Farm halts new property insurance policies in CaliforniaThe company cited rising construction costs and its “rapidly growing catastrophe exposure.”
Read more »
State Farm ceasing new applications in California for property insurance due to ‘historic’ construction costsThe insurance giant cited ‘historic’ construction costs increases and inflation.
Read more »
State Farm will no longer insure new homes in California, company saysState Farm says it will no longer insure new homes and properties in California due to wildfires and rebuilding costs.
Read more »
State Farm will no longer insure homes, businesses in California due to fire risks and costsState Farm announced Friday that it will not take new applications for personal line or business property and casualty insurance in the state of California.
Read more »
State Farm will no longer insure new homes in California, company saysThe new policy began on Saturday.
Read more »