As of yesterday, State Farm, the US’ largest insurer, will no longer write new homeowner policies in the state of California citing #climatechange fueled wildfire losses and increased construction costs.
“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.”
https://www.theguardian.com/us-news/2023/may/27/state-farm-home-insurance-california-wildfires
Allstate becomes the latest insurer to stop offering home insurance coverage in California, following State Farm, AIG & Chubb.
"The cost to insure new home customers in California is far higher than the price they would pay for policies due to wildfires, higher costs for repairing homes, and higher reinsurance premiums" The cost of rebuilding has increased with inflation, but Allstate can't adjust prices quickly due to state regulation, Nash wrote."
https://www.sfchronicle.com/california/article/insurance-allstate-fires-18130622.php
@Smersh how soon will it be before insurance companies do the same to Florida?
@GreenPaladin never as long as the federal government continues to underwrite flood insurance policies. Which makes sense further north where fertile farmland is prone to flooding but much less so in FL cities.