{"id":1940068,"date":"2023-05-28T17:20:03","date_gmt":"2023-05-28T21:20:03","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/largest-home-insurer-in-us-wont-accept-new-applications-for-home-or-business-insurance-in-california\/"},"modified":"2023-05-28T17:21:07","modified_gmt":"2023-05-28T21:21:07","slug":"largest-home-insurer-in-us-wont-accept-new-applications-for-home-or-business-insurance-in-california","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/largest-home-insurer-in-us-wont-accept-new-applications-for-home-or-business-insurance-in-california\/","title":{"rendered":"Top US Home Insurer Halts New Home\/Business Insurance Applications in California."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Flargest-home-insurer-in-us-wont-accept-new-applications-for-home-or-business-insurance-in-california%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1940068&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>State Farm Insurance Stops Accepting New Applications for Homeowners Insurance in California<\/h2>\n<p>After years of devastating wildfires, State Farm Insurance has announced that it will no longer accept new applications for homeowners insurance in California. The decision was made due to historic increases in construction costs, rapidly growing catastrophe exposure, and a challenging reinsurance market.<\/p>\n<p>According to <a href=\"https:\/\/www.cnn.com\/2023\/05\/28\/business\/state-farm-california-insurance-wildfire\/index.html\" target=\"_blank\" rel=\"noopener\">CNN<\/a>, California has had an average of more than 7,000 wildfires a year, burning an average of more than 2 million acres over the past five years. Additionally, the median price of a single-family home rose 44 percent, from $626,170 to $900,170 between June 2020 and May 2022, according to <a href=\"https:\/\/calmatters.org\/housing\/2023\/05\/california-exodus-housing-cost\/#\" target=\"_blank\" rel=\"noopener\">CalMatters<\/a>.<\/p>\n<p>State Farm&#8217;s decision does not impact existing customers or new policies in areas such as car insurance. However, it is a significant blow to California, as State Farm is the nation&#8217;s largest home insurance company, according to <a href=\"https:\/\/www.valuepenguin.com\/largest-homeowners-insurance-companies#:~:text=State%20Farm%20is%20the%20largest%20home%20insurance%20company%20in%20the,disability%20and%20pet%20medical%20insurance.\" target=\"_blank\" rel=\"noopener\">ValuePenguin<\/a>.<\/p>\n<h3>California&#8217;s Challenging Business Environment<\/h3>\n<p>State Farm&#8217;s decision is not unique, as American International Group also left the California home insurance market last year, according to <a href=\"https:\/\/www.npr.org\/2023\/05\/28\/1178648989\/state-farm-home-insurance-california-wildfires-inflation\" target=\"_blank\" rel=\"noopener\">NPR<\/a>. Tech entrepreneur Peter Rex suspects that there is a deeper reason behind State Farm&#8217;s decision, stating that California is a very difficult place to do business.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">\u201cAnd I think that the pretext here, these other reasons, there are real reasons, but I think there\u2019s an unspoken reason here, and that reason is California is a very difficult place to do business,\u201d he said.<\/p>\n<p>\u2014 Peter Rex (@PeterRex) <a href=\"https:\/\/twitter.com\/PeterRex\/status\/1662894494163820546?\">May 28, 2023<\/a><\/p>\n<\/blockquote>\n<p>State Farm&#8217;s decision is a major problem for California investors, businesses, and working people, as insurance is a necessary ingredient to any ownership (home, business, or otherwise), according to Rex.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">\u201cRegulators\/politicians should pivot and do whatever they can to get as many insurance providers competing to sell insurance to business\/investors\/owners asap &#038; start focusing on economically sound long-term minded policy that benefits working-class people,\u201d he said.<\/p>\n<p>\u2014 Peter Rex (@PeterRex) <a href=\"https:\/\/twitter.com\/PeterRex\/status\/1662894811488083969?\">May 28, 2023<\/a><\/p>\n<\/blockquote>\n<p>Despite concerns, a representative of the California Department of Insurance said there was little it could do about the factors driving State Farm&#8217;s decision, including climate change, reinsurance costs affecting the entire insurance industry, and global inflation, according to <a href=\"https:\/\/www.foxbusiness.com\/real-estate\/state-farm-ceasing-new-applications-california-property-insurance-other-policies\" target=\"_blank\" rel=\"noopener\">Fox Business<\/a>.<\/p>\n<p>State Farm has pledged to work constructively with the California Department of Insurance and policymakers to help build market capacity in California. However, it&#8217;s necessary to take these actions now to improve the company&#8217;s financial strength. State Farm will continue to evaluate its approach based on changing market conditions.<\/p>\n<p><strong>The Western Journal<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>State Farm Insurance will no longer accept new applications for homeowners insurance in California due to historic increases in wildfires. The company announced the decision on its website, citing repeated burnings as the reason for the move.<\/p>\n","protected":false},"author":661,"featured_media":1940069,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[17635,4045,4372,27836,8322,27835],"class_list":["post-1940068","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-applications","tag-california","tag-halts","tag-home-business","tag-insurance","tag-insurer"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1940068","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/661"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1940068"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1940068\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1940069"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1940068"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1940068"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1940068"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}