State Farm stops insuring California homes, citing rising risk of wildfires

State Farm logo is seen in the background of a silhouetted woman holding a mobile phone
(Image credit: SOPA Images / Contributor / Getty Images)

State Farm has stopped accepting new applications for homeowner insurance for California residents, citing the increased risk of catastrophic wildfires and the rising construction costs.

The insurance company, one of the leading providers in the area, put a moratorium on applications for business and personal lines property and casualty insurance in California on Saturday, May 27. However, the decision does not affect auto insurance policies or those who previously insured their homes with State Farm. Still, experts say the decision "signals the growing threats to insurance availability and affordability in the face of climate crisis-fueled disasters," per The Washington Post.

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Theara Coleman, The Week US

Theara Coleman has worked as a staff writer at The Week since September 2022. She frequently writes about technology, education, literature and general news. She was previously a contributing writer and assistant editor at Honeysuckle Magazine, where she covered racial politics and cannabis industry news.