...or not!
Posted on 05/27/2023 4:50:29 AM PDT by DFG
The State Farm General Insurance Company will no longer accept new applications for property insurance and other policies in California, citing “historic” increases in construction costs and inflation,” the company said Friday.
Beginning Saturday, the Illinois-based insurance group will cease to accept applications for business and personal lines property and casualty insurance.
The move doesn’t impact personal vehicle insurance.
“State Farm General Insurance Company made this decision due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market,” the company said in a release. “The Department of Insurance is focused on the safety of our homes and communities.”
The insurance company said actions are necessary to improve its financial strength.
“We take seriously our responsibility to manage risk. We recognize the Governor’s administration, legislators, and the California Department of Insurance (CDI) for their wildfire loss mitigation efforts,” the company added. “However, it’s necessary to take these actions now to improve the company’s financial strength.”
(Excerpt) Read more at nypost.com ...
Who would want to buy a house that cannot be insured?
When the earthquake and fires come, all those Californians will be left hanging?
Every insurance company should pull out of California . Risk is too high.
No One is buying SF’s overpriced insurance.
Without insurance there is no mortgage.
Atlas Shrugged
I wonder if this is already happening in Oregon and Washington as well and due to the appalling social problems in those states that are probably that far worse in California (witness San Francisco and Los Angeles).
So if you currently own a home and want to sell, the new owners will be denied insurance from SF? There are others but this will certainly raise rates and give them reason to consider pulling out as well.
My in laws live up near Lake Tahoe smack in the middle of fire country. There is exactly one insurance carrier that will write a policy and wildfire is specifically excluded.
L
Regardless of what State Farm says publicly (which they have to be very, very, careful about), there are only TWO possible reasons they are leaving, one neither has to do directly with ‘construction costs’:
1. They simply don’t know how to price their policies, given the whims of politicians in that state.
2. They are NOT PERMITTED to price their policies to cover the cost of doing business.
I suspect that the reason that they’re not dropping everyone is that there is some law in California that still leaves them on the hook for people they drop without cause, making it cheaper for them to run out the clock with existing customers.
Like a good neighbor. This protects customers from the other 49 states from carrying the costs that result from California’s over regulation and mismanagement of forests, the consequences being blamed on “ climate change”
Nope, we taxpayers will be put on the hook for them. All those democrat votes must be protected ya know.
On a side note. Anyone else notice the State Farm commercials in Spanish recently?
Makes since to me. Business 101, loss vs profit.
California with it’s cesspool of immortality and tax/spend attitude will lead to more business loss.
So State Farm ain’t there?
I have State Farm for auto and home in Kansas. My parents did, as my siblings do. The only complaint is they replaced the original Jake with a black guy for woke reasons.
Without insurance there isn’t much of anything at all.
I think it would be difficult to underwrite and calculate loss exposure in a State where:
1.). The state courts are whimsical and capricious about insurance laws and penalize the carrier.
2,). Where state laws change on utilities protecting their easements causing ever increasing risk and promoting utilities to allow potential problems that will spread.
3.) Where the state keeps water supply for fire fighting low.
4.) Where the state institutes policies forever driving up construction and replacement costs in a manner that cannot be reasonably forecast.
Why not sell policies elsewhere?
Maybe Gruesome Newsom and his Hollowoody pals should start an insurance company.
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