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State Farm to stop accepting homeowners insurance applications in California

A non-public wild land firefighter displays a backfire alongside Previous Lawley Toll Street through the Glass Hearth in Calistoga, California, U.S., October 2, 2020. Image taken October 2, 2020.

Stephen Lam | Reuters

State Farm Basic Insurance coverage Firm on Friday introduced that it’s going to cease accepting new owners insurance coverage purposes in California, citing “quickly rising” disaster dangers like wildfires, “historic will increase” in building prices and a difficult reinsurance market.

“We take critically our duty to handle threat,” the corporate stated in a launch.

State Farm stated it would cease accepting new enterprise, private traces property and casualty insurance coverage purposes beginning Saturday. The brand new coverage is not going to affect private auto insurance coverage, in accordance with the discharge. State Farm’s unbiased contractor brokers can even proceed to serve present clients.

The corporate stated it would work with the California Division of Insurance coverage and different policymakers to enhance situations in California, however that State Farm determined to take motion to enhance its “monetary power.

“We are going to proceed to judge our method primarily based on altering market situations,” State Farm stated.

State Farm didn’t instantly reply to CNBC’s request for remark.