Epoch Times
Insurance company State Farm is halting new property insurance policies in the state of California as the firm battles inflationary pressures and increasing exposure to wildfire risks.
In California, State Farm will “cease accepting new applications including all business and personal lines property and casualty insurance, effective May 27, 2023,” the firm said in a May 26 statement. The company “made this decision due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market.” State Farm agents will continue to serve existing customers for these insurance products. The decision also does not impact personal auto insurance.
State Farm isn’t the first insurer to cut back on their homeowners business in California. Last year, the American International Group notified its high-net-worth clients that the company would stop renewing their policies.
Several insurers are scaling down their insurance offerings to homeowners due to worries about exposure to wildfires. Most of these cutbacks have taken place in regions of the state considered to be prone to the danger. more
Neve4r used State Farm for5 any insurance. Used AAA and they cancelled us. We are insured through USAA, we were lucky to be accepted. Those who can’t get insurance get it through the State, and it’s expensive. I would think some of these insurance companies who have paid out for tornadoes and hurricanes, are thinking twice about insuring in those States as well. Replacement values are outrageous no matter where you choose to live.
One more reason to move out of CA… if you can find a U-Haul or a Them/They-Haul!
Michael Caine said in an interview once, “The reason you never hear about a young actor after a few movies is because of insurance. The young actor/actress gets “cocky”, does not show up on time, does not know the lines, is drunk or on drugs and makes the whole movie production very expensive with his/her antics. They become uninsurable.”
cancelled by the grange years ago, after no claims in 30 years. currently have the California state fair plan, bare bones actual cash value policy. basically means if the house is lost to fire, i walk away with a lump sum, which is about what i have invested. so i get my investment back and nothing else. i have a second home which is a high end rental at reduced rent. the renter is agreed under contract to move in 30 days if my primary home burns giving me a backup home. the idea is to self insure, like way back when there were no insurance companies. the grange used to represent the local people and stuck together providing insurance to the locality because there was no other option. no more, grange has gone corporate. i believe the rurals in california could survive transfer of wealth if they organized and self insured like the old grange. i have no intention of rebuilding in a corrosive environment.
If they don’t raise premiums or cancel, they raise your deductible. SF did that here in SE VA. Used to be able to get a 2% deductible if right on the coast. No more. Now min is 5%.
I’ve had State Farm since I started driving mumble mumble years ago. Get a discount on Homeowners insurance. Deal. Never had a problem with them.
what they are not telling you in the article. a majority of the devastating wildfires in california are not caused by climate change. they are cause by the electrical utilty providers. its a fact, the utility has engaged in a breakdown maintenance program for years to profit. the result is 100 year old equipment in service and failing. the high insurance premiums are directly related to the profit of utility shareholders. its basically another transfer of wealth scheme the state has engaged.
I wanted to dump State Farm auto after they went woke several months back and sent some nonsense to their employees. I’ve had it on my truck for 26 years but who isn’t woke now?
We have no homeowners and if we’re burned out it will give us a reason to move. We’re too old otherwise.
F’ Jake!
And the clowns Gavin Newsom and California democrats blame “climate change” for this.
Apparently that only happens in states and cities controlled by democrats.
@pie: I can self-insure. I can also afford the insurance. I figure why self-insure, I end up losing everything. Not a smart move for me.
“they are cause by the electrical utilty providers.”
The fires are directly attributable to the Enviro-Nazis in the CA gov’t who won’t allow brush to be cut, line right-of-ways cleared, and controlled burns.
The Utilities are being blamed because the Enviro-Nazis and the CA gov’t are cowardly liars who couldn’t care less about the losses of life and property.
mortem tyrannis
izlamo delenda est …
TRF: LOL@ “They/Them Haul”