LOS ANGELES — (LOS ANGELES) -- One of the largest insurance agencies in the country will no longer accept applications for home and business insurance in California due to wildfire risks and the cost of rebuilding.
State Farm has ceased new applications, including all business and personal lines property and casualty insurance, starting Saturday, the company announced in a press release.
State Farm said while it takes its responsibility to manage risk"seriously" and will continue to work with state policymakers and the California Department of Insurance to help build market capacity in California, the decision was necessary to ensure the company remains in good financial standing. The warm, dry climate that serves as fuel for wildfires is typical for much of the West, but hotter overall temperatures on Earth are increasing wildfire risk in the region.
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