State Farm is stopping new home insurance sales in California, citing wildfire risks and skyrocketing construction costs, the company announced Friday. The insurance giant stopped accepting applications for all business and personal lines property and casualty insurance in California on May 27. “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 statement. While “insurance companies prioritize their short-term financial goals, the long-term goal of the Department of Insurance is protecting consumers,” California Department of Insurance spokesperson Michael Soller said. “However, it’s necessary to take these actions now to improve the company’s financial strength,” State Farm said, adding it will reevaluate according to market conditions.

Source: CNN May 28, 2023 14:53 UTC