Can California shore up home insurance market after State Farm halts new policies?

, American International Group let thousands of customers know their home insurance policies would not be renewed, and Chubb, a high-end insurer, said it would continue to non-renew some of its customers.

State Farm in a press release blamed high construction costs that make it extra expensive to rebuild after a home is destroyed in California, growing natural disaster risk — particularly from wildfires — and “a challenging reinsurance market.” “We have very inexpensive home insurance in California,” compared to other states, said Michal Wara, a lawyer and climate scholar at Stanford Law School. “But the thing is, five years ago, we realized ‘oh yeah, actually in California you can burn down 50,000 houses overnight.’”

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

State Farm Is Done Insuring Homes for New Customers in CaliforniaThe decision has massive implications in the insurance industry, which has been bled dry by destructive wildfires and exorbitant construction costs in the Golden State.
Source: thedailybeast - 🏆 307. / 63 Read more »

State Farm not insuring new homes and businesses in CaliforniaState Farm General Insurance Company is no longer accepting new applications for homeowners insurance policies in California, citing rising construction costs and growing risk of catastrophic wildfires.
Source: KTVU - 🏆 465. / 53 Read more »

State Farm cuts new home insurance in California, citing wildfire riskInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Source: BusinessInsider - 🏆 729. / 51 Read more »