- State Farm is halting the sale of new home-insurance policies in California due to historic increases in construction costs and growing catastrophe exposure.
- The move is a blow to California's efforts to maintain a vibrant market for homeowners in the wildfire-prone state.
- The insurer's move doesn't affect existing home-insurance policyholders, whose policies will remain in effect.
- State Farm will also quit accepting new applications for business policies, but it will continue selling new personal auto policies.
- Many home insurers operating in California don't think they are being granted appropriate-enough rates for the risks they are facing.
State Farm Halts Home-Insurance Sales in California
State Farm halts home-insurance sales in California due to wildfire risk and rapid inflation in construction costs, affecting new home-insurance policies and business policies.