State Farm to Cease Covering New Homes in California Due to Wildfire Risk and Costs

State Farm General Insurance Company will stop accepting new homeowners insurance applications in California
State Farm was the largest underwriter of property and casualty insurance policies in California in 2021 with over $7 billion in premiums written, and a market share of 8.3%.
The company brought in over $7 billion in premiums in 2021 but incurred losses of about $4 billion, according to state data.
State Farm cites historic increases in construction costs, growing catastrophe exposure, and a challenging reinsurance market as reasons for the decision.
California has some of the most expensive housing costs in the nation and plans to spend about $30 million to build 1,200 small homes.