Buying a Home in California Is Already Hard. State Farm’s Exit Makes It Harder.
- State Farm, Allstate flee as they push state for rate hikes
- The state is already struggling with an exodus of residents
Firefighters saw trees on a hillside in order to open the path for bulldozers during the Mosquito Fire in California, on Sept. 7, 2022.
Photographer: David Odisho/BloombergCalifornians looking to buy a house face some of the country’s most expensive real estate prices and wildfires that threaten scores of housing tracts. Now there’s another obstacle: finding an insurer willing to cover their dream home.
State Farm General Insurance Co. said it’s no longer accepting new applications for property and casualty coverage in California last week, a year after Allstate Corp. also paused new policies, worsening what FAIR Plan, a state-mandated insurance pool, called a “looming insurance unavailability crisis.”