Wildfires in Southern California are exacerbating the state's insurance crisis, as insurers flee or limit coverage due to rising costs and wildfire risks. Several major insurance companies, including Allstate, State Farm, Farmers Insurance, and Travelers, have either stopped writing new policies or significantly reduced their exposure in California.
The wildfires ravaging Southern California are expected to add further fuel to the state's ongoing insurance crisis, as residents' options for property coverage continue to dwindle or even disappear. Several insurance companies have either fled California, stopped writing new policies or otherwise reduced their exposure in the Golden State, citing business risks amid rising replacement costs and the inability to adequately raise premiums.
CALIFORNIA FIRES: INSURANCE COMPANIES DROPPING COVERAGE AND FLEEING THE STATE DUE TO DECADES-OLD LAWFarmers Insurance Group began limiting coverage in California in 2023, and later that year, one of its subsidiaries, Farmers Direct Property and Casualty Insurance Company, withdrew from the state entirely.
WILDFIRES INSURANCE CALIFORNIA CRISIS COMPANIES
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