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State Farm to stop accepting homeowners insurance applications in California

A personal 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 Common Insurance coverage Firm on Friday introduced that it’s going to cease accepting new householders 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 danger,” the corporate mentioned in a launch.

State Farm mentioned it would cease accepting new enterprise, private strains property and casualty insurance coverage purposes beginning Saturday. The brand new coverage won’t influence private auto insurance coverage, based on the discharge. State Farm’s unbiased contractor brokers may even proceed to serve current prospects.

The corporate mentioned 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 energy.

“We’ll proceed to guage our strategy based mostly on altering market situations,” State Farm mentioned.

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