State Farm to stop offering new home insurance policies in California due to "growing catastrophe exposure"

State Farm, one of the largest home insurers in California, announced it will no longer offer new home insurance policies in the state due to what it calls “growing catastrophe exposure.” This decision is due to more frequent wildfires in the state and a rise in claims for damages caused by them. The insurance company has been gradually reducing its presence in California, but this latest move is more significant. State Farm is not the only insurer to scale back in California, as many companies have been re-evaluating their risk in the state. This could have a big impact on California’s housing market, as homeowners may have a harder time finding coverage and rates may increase for those who do. The California Department of Insurance is closely monitoring this issue and working to make sure homeowners have access to affordable insurance options. This news highlights the ongoing issue of climate change and its impact on the economy and everyday life. As natural disasters become more frequent and severe, the insurance industry will continue to face challenges in determining risk and pricing policies.