State Farm said it would stop selling new insurance policies to homeowners in California, exacerbating troubles for thousands in the wildfire-prone state, who are already feeling the heat with coverage getting costlier or harder to come by.
Additionally, climate change has added to problems. Global insured losses from catastrophes were anticipated to reach at least $15 billion in the first quarter alone, insurance broker Aon PlcState Farm said it would stop accepting new applications in the state effective May 27, adding that the decision will not impact personal auto insurance.
California's first major blaze of the 2023 season, measuring 100 acres or more, occurred in late April, which signalled the potential for extreme wildfire activity this summer and fall. Experts have warned that bountiful rainfall during the winter prompted heavy growth of grass and scrub that will dry out by summer, leaving a larger, thicker fuel bed for wildfires.provider of homeowners' insurance in California, as measured in 2022 direct premiums written, according to data on the Insurance Information Institute's website.
Among those pulling back from home insurance in California in recent years are some household names such as Liberty Mutual, ReutersIn California, nonrenewals of homeowners' insurance policies initiated by insurers in 2021 rose nearly 30% to 241,662 from a year earlier, data from the state's Department of Insurance showed.
FAIR Plan policies made up about 3% of the overall residential insurance policies in California as at the end of 2021, the data showed.Our Standards:
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