Property Insurance Bans 1-15-25

In 2023, State Farm announced that it would stop writing new property insurance policies in California. In March 2024, State Farm also announced that it would discontinue coverage for 72,000 home and apartment policies in the state. 

Reasons for leaving 

·        Inflation: Construction costs have increased faster than inflation

·        Catastrophe exposure: The risk of wildfires and other extreme weather events has increased

·        Reinsurance market: The reinsurance market is challenging

·        Regulatory costs: Insurance regulations in California are outdated         

Other insurers leaving California

·        Allstate: Announced in June 2023 that it would stop writing new policies in California 

·        Farmers: Has curbed new policy applications in California 

·        USAA: Has curbed new policy applications in California 

Norb Leahy, Dunwoody GA Tea Party Leader