If you have State Farm homeowner’s insurance, you might not be thrilled about the company’s latest policy.
State Farm General Insurance Co. issued a statement on May 26 with some unnerving news: It would no longer be offering insurance for new homeowners who live in California.
State Farm’s provider of homeowners insurance in California will “cease accepting new applications including all business and personal lines property and casualty insurance, effective May 27, 2023,” the statement read. “This decision does not impact personal auto insurance.
“State Farm General Insurance Co. made this decision due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market.”
In recent years wildfires in California have caused billions in damage, leading many insurers to cancel policies, to the point that the state placed a moratorium on the practice in 2019.
Naturally, people are criticizing State Farm because of the announcement.
Others believed that California would not be the only state to see this sort of change, wondering aloud if the next ones in line could be Florida or Louisiana, which almost yearly are hammered by destructive hurricanes.
And naturally, at least one Twitter user pointed out the irony of it all alongside State Farm’s well-known jingle, “Like a good neighbor, State Farm is there.”
Receive full access to real-time market analysis along with stock, commodities, and options trading recommendations. Sign up for Real Money Pro now.