A private firefighter monitors a backfire along the Old Lawley Toll Road during the glass fire in Calistoga, California, the United States, October 2, 2020. Picture taken October 2, 2020.
Stephen Lamb | Reuters
The State Farm General Insurance Company announced on Friday that it would no longer be accepting new home insurance claims in California, citing “rapidly growing” catastrophe risks such as wildfires, “historic increases” in construction costs and a difficult reinsurance market.
“We take our risk management responsibilities seriously,” the company said in a press release.
State Farm said it will stop accepting new applications for business, personal, property and casualty insurance starting Saturday. According to the press release, the new policy will have no impact on private car insurance. State Farm’s independent contract representatives will continue to serve existing customers.
The company said it will work with the California Department of Insurance and other policymakers to improve conditions in California, but State Farm has decided to take action to improve its “financial strength.”
“We will continue to evaluate our approach based on changing market conditions,” State Farm said.
State Farm did not immediately respond to CNBC’s request for comment.
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