Wildfire Risks and Builders' Costs Force Insurers to Limit Policies in California

Allstate and State Farm, two of the largest home insurers, will no longer sell new policies in California due to wildfires, climate change, and skyrocketing housing costs.
California faces its largest wildfire threat in history, with over 1.2 million homes at extreme risk and insurers losing money on claims.
The state’s insurance regulations have kept rates relatively low, but companies can’t adjust quickly enough for disasters and building costs.
The loss of major insurers will force homeowners into a bare-bones state plan or leaving their homes uninsured altogether.
The crisis highlights how climate change is forcing a "managed retreat" from disaster areas as costs become unsustainable.