State Farm Halts New Homeowner Insurance Policies in California Due to Wildfire Risk and Costs

State Farm will no longer accept new applications for homeowner insurance in California citing increasing wildfire damage, high rebuilding costs, and a challenging reinsurance market.
The decision affects only new customers; existing policyholders will not lose coverage.
California's wildfire season is becoming longer and more destructive, with the first major blaze of 2023 occurring in April.
Homeowners who lose coverage will need to get insurance from the state's FAIR Plan, a high-risk insurance pool.
Insurers globally face substantially higher reinsurance rates in 2023, with some California homeowners seeing 200% increases.