State Farm recently announced that it would no longer be offering new property insurance policies in California. The company cited rising construction costs and its “rapidly growing catastrophe exposure” as the main reasons for this decision.
This news has been met with disappointment by many current customers, who now must find alternative coverage options or risk being uninsured. State Farm is one of the largest providers of home and auto insurance in California so this change could have a significant impact on the market overall.
The company stated that existing policyholders are unaffected by this decision and can continue to renew their coverage without interruption; however, they may experience higher premiums due to increased risks associated with natural disasters, such as wildfires and earthquakes, which are becoming more frequent in recent years. They also noted that they remain committed to helping Californians protect their homes through other products like renters’ insurance or flood policies if needed.
State Farm’s move highlights an important issue facing homeowners throughout California: rising construction costs coupled with increasing disaster risks make finding affordable property insurance increasingly difficult for many people living there – especially those located in high-risk areas prone to natural disasters like fires or floods. As a result, consumers need to shop around carefully when searching for adequate protection against these threats while still staying within budget constraints set by insurers.
Read more at Orange County Register
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