State Farm stops writing new business in California
State Farm General Insurance Company, State Farm’s provider of homeowners insurance in California, will cease accepting new applications including all business and personal lines property and casualty insurance, effective May 27, 2023.
This decision does not impact personal auto insurance.
State Farm made this decision due to “historic increases” in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market.
State Farm independent contractor agents licensed in California will continue to serve existing customers for these products and new customers for products not impacted by this decision.
“We take seriously our responsibility to manage risk. We recognize the Governor’s administration, legislators, and the California Department of Insurance (CDI) for their wildfire loss mitigation efforts. We pledge to work constructively with the CDI and policymakers to help build market capacity in California,” State Farm shared in a message on its website. “However, it’s necessary to take these actions now to improve the company’s financial strength. We will continue to evaluate our approach based on changing market conditions.”