Earlier this week, State Farm announced that it will no longer be issuing new homeowners insurance policies in the State of California.
In explaining the new protocol, company officials cited the increasing occurrence of wildfires and the challenges they’re encountering in the reinsurance market. While construction costs that are climbing even faster than inflation was another justification for the decision, both reinsurance issues and wildfire probabilities reinforce the environmental scale of this shift.
The flood insurance markets have seen drastic changes of late, as well, with more than half of Louisiana flood insurance policyholders seeing an increase in their rates for at least the last 2 years, and some parts of Florida seeing flood insurance premium spikes in excess of 300% year over year.
You can read more about these issues here.
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